When you own stock in a corporation, you expect that the board of directors and the management of that company act in the best interests of the shareholders at all times. Failure to do so constitutes a breach of fiduciary duty and shareholders have the right to take action to correct the problem.
When a shareholder sues the board of directors on behalf of the company, it is called a derivative action. These actions seek to stop self-interested transactions, self-dealing, and other behavior that is against the best interests of the company. Derivative lawsuits are often very complex and many must be acted on very quickly. An experienced derivative action lawyer will have the capability to efficiently initiate the case and begin the process of protecting shareholders' rights.Experienced Derivative Action Attorneys
We at Frank LLP have been active in litigating actions on behalf of companies and their shareholders. We fight aggressively to ensure that corporate leadership lives up to its fiduciary duty and makes decisions that support corporate health and maximize shareholder value.
One type of case we see frequently involves takeovers, acquisitions or mergers. If the board of directors is selling a company for too little or acquiring a company for too much, shareholders can initiate a derivative action to stop the deal from going through. However, the action must be initiated before the deal is finalized. If you are aware of a corporate transaction like a takeover, merger, or acquisition, or where a large piece of a business is being sold for too little money, that could be harmful to the company, you should contact us immediately.Contact Us for a Free Consultation
Contact our office today to discuss your derivative action questions. We have the experience and knowledge to handle your case with efficiency and see it through to its conclusion.