What is a derivative lawsuit and how does a derivative lawsuit work in San Diego? A derivative lawsuit is brought by a shareholder or group of shareholders against the executives or the Board of Directors of a corporation. The lawsuit is actually brought on behalf of the corporation against its management in response to poor management, violation of duties or other actions which have damaged or reduced the value of a shareholder’s interest in the corporation.
The experienced shareholder dispute attorneys at the Watkins Firm have decades of experience in derivative lawsuits and shareholder disputes here in San Diego. We have managed substantial derivative lawsuit work in San Diego and are prepared to counsel and represent area shareholders. The derivative lawsuit allows shareholders to recover lost value in their corporate interest in the form of financial damages. These financial damages are given to the corporation itself and not to the shareholders who brought the derivative lawsuit against the company. The derivative lawsuit is often compared to a class action in that the shareholder who files the lawsuit is required to provide notice to all other shareholders (at the expense of the corporation) regarding the purpose of the lawsuit and what it is intended to accomplish. This provides other shareholders with the opportunity to join the lawsuit.
The Watkins Firm attorneys will work to establish the behavior of the executives or directors as well as any violation of fiduciary duties or other responsibilities which have adversely affected the corporation and its value. When successful, our derivative lawsuit work will result in a financial judgment against the corporations executives or directors. These damages will be paid to the corporation itself, usually less the legal fees and expenses borne by the shareholder(s) who bring the action.
What makes a derivative lawsuit work is quite legally complex and requires San Diego shareholder dispute attorneys with extensive experience and expertise. The Watkins Firm has decades of service to San Diego shareholders resolving shareholder disputes and bringing derivative actions when necessary to correct the course of the organization. If you are involved in a shareholder dispute or which to learn more about what might make a derivative lawsuit work for your unique circumstances we invite you to contact us for a free consultation at 858-535-1511.