Derivative Claims

Derivative Claims

When shareholders take action against those in charge of a corporation who are not acting in the best interest of the company and its shareholders, it is called a Derivative Claim. Such claims are taken by a shareholder against one or more defendants within a corporation. The shareholder in derivative claims cases is representative of the shareholders as a whole, and the attorney working the case usually directs the shareholders. Such cases typically involve accusing members of the executive body of a corporation of inadequate leadership, and of taking actions that have had negative impacts for the shareholders as a whole.

This is not a case brought by one shareholder on behalf of themselves or a small group of shareholders. These cases are brought by individuals on behalf of all the shareholders (and in turn the corporation). These cases seek compensation for, or remediation of, negative events that have been a result of poor leadership and/or mismanagement of the company. Derivative claims give shareholders a voice in the operation of a company, and allow them to address problems in the company without directly suing the corporation and harming their own interests.

Two courses of action that can be taken in derivative claims cases are breaches in duty of loyalty and duty of care. The duty of loyalty concept means that the director understands that they should do what is best for the company, even if it means they give up their own payment. The duty of care concept centers on the idea that the director failed to lead the company honestly. Typically, lawsuits are more successful when challenging an executive’s duty of loyalty. Derivative claims result in monetary settlements, dismissal of the case, or compromises on the course of action of the company.

What Makes Our Firm Different

  • Over 85 Years of Combined Experience
    At our firm, you can trust we have the experience to handle your case successfully. Each of our attorneys bring decades of experience practicing in the areas of employment and business litigation.
  • We Work as a Team
    At YMS, we believe collaboration is key to success. Working collectively with our clients ensures that every angle is explored in order to achieve the best results.
  • We Are Trial Attorneys
    Each of our attorneys has extensive experience litigating in a courtroom. We always try to settle outside of court, but if the case requires us to go, our team is prepared to do so.
  • Big-Firm Experience. Small-Firm Approach.
    Having previously worked at some of the largest law firms in the city, our attorneys can bring a high level experience to your case, yet keep the client-attorney relationship very personal.
A team Approach

At YMS, you get a team of trial lawyers with a combined experience of over 85 years looking at your case, ensuring the best course of action is taken.

Contact Us Today 

Start With a FREE Consultation
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.