Shareholder Rights & Derivative Litigation

When the officers and directors of a publicly-traded company breach their fiduciary duties, they don’t just harm investors, they harm the company as well. Of course, the company will not sue the officers and directors since the officers and directors are the very people who control the company. That’s where the shareholder derivative action comes in.

In a shareholder derivative action, shareholders enforce the corporation’s rights and redress its injuries when the board of directors fails or refuses to do so. The derivative action is practically the only remedy for calling the management to account for its wrongs against the corporation and to obtain restitution.

The attorneys at Johnson Fistel have considerable experience litigating derivative actions on behalf of small, medium, and Fortune 500 companies. If you own stock in a company, and believe the officers and directors have put their own interests first, please contact us so that we can obtain better corporate governance for you and your fellow shareholders.