Shareholder Derivative Actions

The directors and officers of every publicly traded company have a duty to act in the best interest of their shareholders. However, at times, these people act negligently, exercise poor management, or breach their fiduciary duty. When this happens, the securities litigation attorneys at Herman Jones LLP can step in to protect your rights by filing a shareholder derivative lawsuit.

Shareholder derivative action is a tool that shareholders can use to address injuries to their investments and seek remedy for the alleged wrongdoing. Herman Jones LLP has represented plaintiffs across the country and successfully litigated high-profile shareholder derivative lawsuits.

Read more about our successful cases in shareholder derivative lawsuits, such as the City of Pontiac Employees’ Retirement System v. Langone (Home Depot) and Community Health System, Inc. in which our team obtained $60 million in financial relief, the largest shareholder derivative recovery ever in Tennessee and the Sixth Circuit.

Interested in talking to a leading securities litigation attorney today? Send Herman Jones LLP a message now or call 404.504.6500 to get your contact us for a review of your case.

Who can file a shareholder derivatives lawsuit?

Typically, individual investors or groups of investors can file shareholder derivative lawsuits in their own names on behalf of the company. The ultimate goal of a shareholder derivative lawsuit is to prevent further harm to the company and its shareholders and to remedy the wrongdoing.

Shareholders generally file a lawsuit when the company has a valid cause of action but has refused to use it; some states require a pre-suit demand of the Board of Directors before a derivative lawsuit can be filed. This may happen because the directors or executives of the company choose not to take legal action against their fellow officers.

What kind of corporate misconduct can a shareholder derivative lawsuit address?

Herman Jones LLP’s securities litigation attorneys can help clients seek remedy for corporate wrongdoing such as…

  • Breach of fiduciary duty
  • Breach of duty of loyalty
  • Fraud or other unlawful activity
  • Wasting corporate assets
  • Self-dealing
  • Backdating stock options
  • Inflation of financial statements or other accounting malpractice
  • Inflated executive compensation
  • Violation of consumer protections
  • Inappropriate mergers and acquisitions
  • Violation of workplace safety guidelines
  • Violations of environmental law

Whatever the type of corporate misconduct, our attorneys can help shareholders file lawsuits to achieve meaningful corporate governance reform. For example, we obtained unprecedented corporate governance reform on behalf of Community Health Systems, Inc.

How will Herman Jones LLP help me?

With decades of experience protecting our clients’ interests and enforcing their rights as shareholders, Herman Jones LLP is trusted to handle complex, high-stakes securities matters. Herman Jones LLP is a recognized leader in shareholder derivatives litigation with the honors and rankings to back it up.

We’ve helped our clients achieve landmark corporate governance reform and obtained unprecedented shareholder derivative recovery. With a proven history of success in securities litigation and shareholder derivative action, we are here to serve you and protect your investments.

Let’s discuss your situation during a free consultation, where we can do an intensive review of your case and map out the best path forward to get justice for your losses.

Call 404.504.6500 or send us a message now to get started.

Successful Shareholder Derivative Lawsuits

In re Community Health System, Inc. Shareholder Derivative Litigation- No. 3:11-cv-0489 (M.D. Tenn). In a shareholder derivative case in the U.S.D.C. for Middle District of Tennessee, Herman Jones LLP served as primary counsel in a case that was resolved after discovery for a record $60 million in cash.

In re HOME DEPOT Shareholder Derivative Litigation– in cases pending in Fulton County Superior Court, our attorneys served as lead counsel for plaintiffs in shareholder derivative suits arising out of stock options backdating and Robert Nardelli’s termination. The case was eventually settled for landmark corporate governance reforms, as well as attorneys’ fees of $14.5 million.

As a result of the settlement, among other changes, Home Depot’s Board of Directors was required to implement several reforms, including restructuring itself, requiring that two-thirds of directors be independent, and permit large shareholders or groups of shareholders to nominate directors, among other changes.

Herman Jones LLP’s Promise to You

  1. We will analyze your case from every angle and find the right solution for you.
  2. We bring high-profile experience and value into all of our shareholder derivative lawsuits
  3. We will help you achieve the best possible outcome for your case.
  4. We will aggressively fight for justice on your behalf.

If the suit is successful, the proceeds from the lawsuit go to the company, not the shareholder(s) who initially filed.

Contact Our Top National Intellectual Property Attorneys Today

Herman Jones LLP is here to help you with your shareholder derivative lawsuit. Whether you have questions about your situation or are ready to pursue legal action immediately, we can help you choose the right path for your case. We will use our extensive experience and success in high-stakes shareholder derivative cases to win meaningful corporate governance reform for you.

Contact us to schedule a review of your case today by calling 404.504.6500 or send us a message now. We look forward to hearing from you.