Shareholder Derivative Litigation

When the value of a company is diminished because of willful mismanagement, insider self-dealing or other acts of malfeasance, shareholders may bring a derivative suit against the board of directors and other responsible individuals in order to improve corporate governance and to recoup damages suffered by the company.

Corporate governance reforms can vary, but they are typically designed to prevent the reoccurrence of misconduct in the future. These reforms may include:

  • Changing internal accountability and reporting processes
  • Modifying management’s reporting structure to ensure that board members are better informed and are empowered to fulfill their fiduciary duties to shareholders
  • Increasing the number of independent, outside directors
  • Removing wrongdoers from board positions and/or management
  • Establishing additional board committees to provide oversight and prevent improper conduct
  • Changing management’s compensation arrangements
  • Improving a company’s public disclosures

Our Approach to Shareholder Derivative Lawsuits

Motley Rice attorneys pursue shareholder derivative lawsuits against corporate officers and directors who have allegedly breached fiduciary duties owed to the company. Through these cases, investors can directly impact long-term investment value through enhanced director independence and improved disclosure policies, and improve compliance with laws, rules and regulations involving:

  • Accounting
  • Labor relations
  • Environmental concerns
  • Workplace health and safety
  • Anti-bribery statutes (such as the Federal Corrupt Practices Act)
  • State and federal contracting requirements (and the applicable versions of the False Claims Act) and other related matters

*Prior results do not guarantee a similar outcome.

Shareholder Derivative Case HIGHLIGHTS

Current Motley Rice Shareholder Derivative Cases 

  • IPC
  • Chemed

Contact a Shareholder Derivatives Lawyer

To learn more about or to discuss a potential shareholder derivative lawsuit, contact attorney Gregg Levin by email or call 1.800.768.4026.


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