What To Know About Shareholder Derivative Lawsuits
Shareholders of a corporation have important rights. Among them, California law gives shareholders the authority to sue the leaders of a corporation or third parties for misconduct. These lawsuits are called shareholder derivative actions because the shareholders are suing on behalf of the corporation.
There are many strict requirements for these lawsuits, and having a skilled attorney is essential. At The Law Offices of Colin A. Hardacre, APC, I represent both shareholders and defendants in derivative suits. I have more than 15 years of litigation experience that I put to work for my clients. Based in Calabasas, I handle derivative lawsuits across the Los Angeles area.
The Many Nuanced Requirements For Shareholder Derivative Actions
Shareholder derivative suits are a powerful tool for pursuing accountability and deterring misconduct. However, they’re only available in limited circumstances.
To pursue a derivative claim, you must have adequate grounds for misconduct or wrongdoing on the part of a board member, officer or third party. You must first request the board of directors to address your concerns. Only if they fail to do so will you be able to file a lawsuit, which also requires posting a bond.
There are many nuances to these requirements, which is why it’s so important to work with a lawyer who understands them.
Get Further Guidance On Your Rights As A Shareholder
If you’re considering a shareholder derivative lawsuit, or you have questions about your rights as a shareholder, reach out to me for guidance. I can advise you on whether you have a strong claim and how to strategically navigate the process. I can advocate for you at all stages of the legal process, including on appeal. Learn more by calling 818-303-2211.