Derivative/Corporate Governance Action
Experienced Securities Class Action Lawyers Protecting Shareholders
Corporations are owned by their shareholders. Too often, corporate insiders put their own self-interest above the interests of the company they manage. When insiders abuse their positions of trust and commit mismanagement, they harm the company and its shareholders. The securities class action lawyers at Glancy Prongay & Murray LLP (GPM) hold corporate insiders accountable when they abuse the shareholder’s trust for their own benefit.
GPM has decades of experience successfully prosecuting claims for mismanagement against unfaithful corporate insiders. We regularly represent shareholders in state and federal courts nationwide against directors and officers who abuse their positions. Derivative actions prosecuted by our attorneys have recovered hundreds of millions of dollars and forced significant corporate governance reforms at hundreds of companies.
Our attorneys have a sophisticated understanding of the legal options available to shareholders with securities in the corporate governance context. We are selective about the cases we file and conduct comprehensive factual investigations prior to filing suit. Our firm assumes the risks of the litigation, and we don’t get paid unless we are successful. As such, we are partners with our clients and only pursue cases in which we believe our client has a valid claim.
A fiduciary duty is the highest standard of care under the law. Corporate officers and directors owe fiduciary duties to the company that employs them. These duties require corporate officers and directors to act in good faith and be loyal to the interests of the company. When insiders fail to live up to this high standard of behavior they breach their duties and harm the corporation. Common examples of fiduciary breaches include when insiders prefer their own interests over those of the corporation, act when uninformed or in bad faith, or cause the corporation to violate applicable law.
Fiduciary breaches harm shareholders. When insiders breach their fiduciary duties, shareholders pay the bill. Not only is a corporation’s balance sheet hurt when mismanagement causes government fines or class action settlements, stock prices fall due to corporate scandals. Fortunately, when corporate insiders breach their duties shareholders have legal recourse.
Filing a Shareholder Derivative Action
A shareholder derivative action is a lawsuit in which shareholders sue insiders to remedy the harm done to the corporation by mismanagement or fiduciary breaches. Although well suited to address modern day corporate abuses, derivative actions were first recognized by English courts over 175 years ago.
Our dedicated derivative actions team conducts robust pre-suit investigations and creates a case-specific litigation strategy designed for the particular facts at issue and applicable state law. Based on this strategy we will decide whether to file suit immediately, demand pre-suit discovery from the company, or demand the board act to hold the wrongdoers accountable. Where possible, we attempt to resolve the issue without litigation. When litigation is required we are prepared. Our goal is to file the strongest complaint possible to most effectively represent the interests of the shareholders and corporation.
When the board will not act to defend the company’s rights and shareholders’ investment, our attorneys do so by filing a shareholder derivative action naming as defendants the individuals who abused their positions. The remedies our derivative actions seek are case-specific, but can include disgorgement of ill-gotten gains, damages, and the imposition of corporate governance reforms.
Our attorneys are experienced, achieving impressive results against powerful corporate insiders represented by the largest and most sophisticated law firms in the country. We are prepared to take every derivative action to trial if necessary.
GPM recognizes the enormous task of monitoring a large portfolio. Yet, early detection can often mitigate the level of damages caused by fraud, negligence, and fiduciary breaches. For this reason, our firm offers portfolio monitoring services that help you to protect your investment and take immediate action should a problem occur.
Contact the Knowledgeable Securities Class Action Lawyers at Glancy Prongay & Murray LLP
If you believe the officers or directors of a company in which you own stock have by mismanaged the company or breached their fiduciary duties, contact Glancy Prongay & Murray LLP today. When you contact our firm, our securities class action lawyers will discuss your rights and options during your free consultation.