New York Shareholder Derivative Litigation

Shareholder derivative litigation seeks to enforce and further the rights of shareholders by holding boards of directors and executive officers accountable for harm caused to the company. We represent proactive investors, of all sizes, who seek revisions and implementation of corporate governance to maximize shareholder value. Other relief may include the removal of officers or directors, monetary payments, and the formation of special committees.

For example, if officers or directors were misreporting company income to disguise insider loans or financial packages, a derivative action may compel the formation of an Audit Committee.  Audit Committees oversee the organization’s management, internal and external auditors to protect and preserve the shareholders’ equity and interests.  This could boost company profits and share price.  Other corporate committees include Disclosure Committees, Compensation Committees, Ethics Committees, and Public Relations Committees, among others.

Another example would be if officers or directors of a pharmaceutical company were misreporting the results of trial drug testing.  A derivative action may compel the formation of a Disclosure Committee to prevent incorrect press releases and stop the company’s stock from spiking to artificial highs.

Why Choose Us?

  • Our attorneys have handled many shareholder derivative cases including improper disclosures and faulty accounting.
  • We enable shareholders of all sizes to be heard in the oversight of their companies. In a derivative case, any shareholder, even if they own only a single share, can bring a case if they are a continuous holder during the period of wrongful conduct. This is why we advise shareholders to always hold some stock if they plan to redress wrongdoing.
  • There are no costs to be a plaintiff. In fact, if successful, plaintiffs may receive a court awarded fee for their efforts. This fee belongs entirely to the plaintiff.
  • We take all the financial risk of litigation. We advance all costs in bringing the case and are compensated on a contingency fee basis.  Any fee we receive is, typically, subject to court approval.
  • Shareholders can be as involved as they want. Our firm respects your schedule and will make every effort to make the case convenient for you.
  • You will always have direct access to your attorney when we represent you in shareholder derivative litigation.

What Is Shareholder Derivative Litigation?

A shareholder derivative lawsuit is a case brought by a shareholder on behalf of a corporation. Generally, these cases can only occur when the corporation has a valid case but refused to pursue it. This can happen when a corporate director or officer or someone close to the company is the defendant in the lawsuit. If the suit succeeds and damages are awarded, they go to the corporation. This can lead to a higher share price.

Reasons to File a Shareholder Derivative Lawsuit

To bring a shareholder derivative cause of action, the shareholder must have owned shares at the time of the defendant’s wrongdoing. Such a case may be filed by a shareholder on behalf of the corporation against an officer or director who has a fiduciary duty to maximize shareholder value for the benefit of the corporation and the shareholders. Shareholder derivative cases are filed with the purposes of:

  • Improving corporate governance
  • Preventing waste of corporate assets and future breaches of fiduciary duty
  • Restoring shareholder value

Pre-Litigation Demand

Pre-litigation demand requires a plaintiff shareholder to first make a demand on the corporation to pursue a remedy within the corporation and to assist the corporation in bringing a cause of action.  Alternatively, a plaintiff may forego demand when it is futile because a board lacks independence or there is an interested director.  Demand is often futile and considered unnecessary when the directors are culpable of wrongdoing, in which case they cannot be expected to bring a lawsuit against themselves.

What Happens If the Board Agrees to the Lawsuit?

Depending on the circumstances, the board of directors may agree to the shareholder’s demand and proceed with litigation against the corporation. If that occurs, the corporation will file the lawsuit against its own board and executive officers.

Why You Need a Lawyer

Shareholder derivative cases are based on corporate wrongdoing usually with a plunge in stock price. A derivative case will impose new corporate reforms to stop the wrongdoing from happening again and preserve or restore share value.

If the lawsuit is successful, the shareholder may be entitled to compensation. This compensation is court ordered and can be significant. Your best course of action is to have an experienced securities litigation attorney by your side from the beginning.

Contact Us Today

Our attorneys at Moore Kuehn have experience in all types of securities litigation. Call us as soon as possible if you are considering shareholder derivative litigation.

PRACTICE AREAS

NEW YORK

Discrimination on the basis of disability can have a negative impact on employment and livelihood and other aspects of life. If you have been a victim of disability discrimination, contact Moore Kuehn today.

Riding a bicycle has its obvious advantages, including avoiding the traffic and daily congestion of the city. Bicycles are also no match against the millions of passenger cars, taxis, buses, and trucks out on the roads of New York City.

Car accidents are a leading cause of injury and death across the nation. Sadly, no matter how diligently we drive, there is always the risk of being involved in a wreck caused by another driver. If you have been hurt in a car accident that was someone else’s fault, call Moore Kuehn today.

Moore Kuehn maintains an active commercial litigation practice. We work with clients that require personalized strategies and budgets to manage their cases in the most cost-effective way possible.

Companies often engage in deceptive marketing, false advertising, and unfair trade practices, or violate state-specific statutes mandating certain policies and procedures. Such practices drive revenue while inducing consumers to unfairly rely on the company’s misrepresentation.

Moore Kuehn seeks to hold employers of all kinds liable for violations of state and federal employment laws. These lawsuits can take the form of personal lawsuits or employment class action lawsuits, allowing many employees who were wronged by the same employment law violations to join together in a single lawsuit.

Moore Kuehn focuses on all areas of personal injury litigation. Personal injury cases may concern a wide range of facts and claims, such as dangerous products, defective drugs, medical negligence, food contamination, unsafe work conditions, and automobile accidents.

Consumers have a right to expect that the products they buy will be reasonably safe to use. Unfortunately, manufacturers sometimes release dangerous products in the marketplace.

Moore Kuehn regularly investigates publicly traded companies for securities law violations. Moore Kuehn recovers assets for investors and holds defendants accountable for misrepresenting important information to investors.

No one should have to endure sexual harassment in the workplace. This type of behavior is specifically prohibited under state statutes and federal law. If you have been subjected to sexual harassment on the job, contact Moore Kuehn right away.

Shareholder derivative litigation seeks to enforce and further the rights of shareholders by holding boards of directors and executive officers accountable for harm caused to the company. We represent proactive investors, of all sizes, who seek revisions and implementation of corporate governance to maximize shareholder value.

Slip and fall accidents are a serious matter. They can cause severe injuries with life-altering consequences for the victim. If you have been hurt in a slip and fall on someone else’s property, contact Moore Kuehn today.

Truck accidents can cause serious, catastrophic, or fatal injuries. If you have been injured or lost a loved one in a collision with a large commercial truck, contact Moore Kuehn as soon as possible.

The Telephone Consumer Protection Act, or “TCPA,” prohibits anyone from calling or texting you using an automated dialing system, unless they had your prior permission. TCPA lawsuits often result when companies won’t stop sending harassing calls or texts to consumers.

CONNECTICUT

Federal law prohibits discrimination against a person with a disability. All Connecticut employers, schools, business owners and landlords must comply with the Americans with Disabilities Act (ADA), which prohibits discriminating against a person with a disability.

Dealing with the aftermath of a serious car accident can be extremely stressful, especially if you have sustained serious injuries and are unable to pay medical bills. Having an experienced attorney on your side to fight for fair compensation will let you focus on what matters, your recovery.

Moore Kuehn maintains an active commercial litigation practice. We work with clients that require personalized strategies and budgets to manage their cases in the most cost-effective way possible. We strive to provide immediate comprehensive advice with preliminary judgments about the client’s exposure, the likelihood of success, and the best way to proceed.

Companies often engage in deceptive marketing, false advertising, or unfair trade practices, or violate state-specific statutes mandating certain policies and procedures. Such practices drive revenue while inducing consumers to unfairly rely on the company’s misrepresentation. Examples include mislabeling a product, making false claims about a product’s health benefits, or improperly applying loan payments.

Moore Kuehn seeks to hold employers of all kinds liable for violations of state and federal employment laws. These lawsuits can take the form of personal lawsuits or employment class action lawsuits, allowing many employees who were wronged by the same employment law violations to join together in a single lawsuit.

Moore Kuehn focuses on all areas of personal injury litigation. Personal injury cases may concern a wide range of facts and claims, such as dangerous products, defective drugs, medical negligence, food contamination, unsafe work conditions, and car accidents.

When a consumer purchases and uses a product, he or she expects it to be safe to use for it’s advertised and intended purpose. A product manufacturer or seller may, through an act of negligence, allow a dangerous and defective product onto the marketplace.

Sexual harassment in the workplace is illegal, and victims have recourse under state and federal law. If you have been a victim of sexual harassment, call Moore Kuehn as soon as possible. Our experienced Connecticut employment lawyers can discuss your options and help protect your legal rights.

Connecticut property owners or operators, with a few exceptions, are responsible for providing safe premises for visitors, renters, and customers. A failure to maintain a safe property for others can result in serious slip and fall accidents, cause serious injury and long-lasting chronic pain.