Shareholder Derivative Lawsuits

Here at The Mottley Law Firm, we have a practice area dedicated to representing corporate shareholders in shareholder derivative actions against wrongdoers who have damaged the company. A derivative action is a type of lawsuit in which minority shareholders may sue in the name of the company and sue people for harming the company.

You may wonder why this is necessary, and why the company doesn’t simply sue someone on its own. Why do minority shareholders need to cause the company to do this? Shareholder derivative suits are necessary when the people who control a corporate entity (to include a corporation or a limited liability company) have failed or refused to cause the corporate entity to pursue a civil claim against the wrongdoers. This most often happens when a corporate board of directors that has acted improperly and damaged a company refuses or fails to cause a corporate entity to sue themselves for their own wrongdoing. They are conflicted and will not sue themselves. It is in these situations that shareholder derivative actions are most useful.

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If you believe that you, or your business, are involved in a business where a corporate shareholder derivative suit may be necessary to address mismanagement of a company, you should consult with an experienced attorney in this area of the law.

Here at The Mottley Law Firm, we have many years of experience in this area, and would be glad to speak with you about your situation. Please reach out to us for a consultation by calling the number on this website, filling out one of the contact forms here, or chatting with one of our representatives in the chat box on this website.

Kevin W. Mottley [email protected]

Richmond, VA trial lawyer dedicated to handling brain injuries, car accidents and other serious injury claims