Stockholder and Shareholder Derivative Litigation
Directors and officers serve in complex and demanding roles. Increasingly, those roles in both public and closely held companies are being challenged by shareholder derivative lawsuits. These cases range from mere distractions to fundamental challenges to the integrity of a company’s decision making.
Stevens & Lee understands the financial and reputational impact cases such as these can have on a company, especially when lawsuits arise in the midst of a merger or acquisition. Therefore, we focus on developing a practical, thoughtful and cost-effective defense plan, and our experience permits us to manage these lawsuits so that the deal closes on time.
Stevens & Lee has extensive experience investigating and defending all aspects of complex shareholder derivative matters in federal and state courts. We represent:
- The officers and directors who are the targets of claims of breach of fiduciary duty, fraud or misrepresentation
- The corporate entity that is a direct target, or the nominal defendant in a shareholder derivative action
- Special litigation committees of corporate boards that are charged with investigating and reporting on shareholder demands
Often, companies purchase insurance policies to protect their directors and officers from personal exposure to claims. We are experienced at working in the interests of our individual clients while complying with the budgeting, billing and reporting guidelines of their insurance carriers.