Practice Areas

Shareholder Derivative Actions

A shareholder derivative suit is a lawsuit brought by a shareholder on behalf of a corporation. Generally, a shareholder can only sue derivatively on behalf of a corporation when the corporation has a valid cause of action, but the board of directors has refused to use it, or requesting the corporation’s board to do so would be futile. This often happens when the defendant in the suit is someone close to the company, like a director or a corporate officer.  If the suit is successful, the proceeds go to the corporation, not to the shareholder who brought the suit.

Securities Class Actions

Securities fraud is the intentional or reckless concealment, omission, or manipulation of financial information by a public company in violation of securities laws. Such actions may cause investors to purchase securities based on false information. This misleading information can artificially inflate the price of the company’s securities above their true value. When the underlying truth is exposed, the prices of these securities plummet, resulting in losses for investors who relied upon the misrepresentations.