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At the MLG Business Litigation Group, our skilled direct and derivative shareholder disputes attorneys in Florida & California guide individuals through what can be intense stakeholder litigation matters that affect them personally, professionally, and financially.
The complex nature of shareholder disputes requires experienced Florida & California business litigation attorneys to pursue legal solutions through direct or derivative suits, based on the unique circumstances that led to the initial and ongoing disagreement.
The origin of direct suits brought by shareholders is the belief that the corporation has violated a duty owed to the shareholder.
For instance, a shareholder might file a direct lawsuit after a corporate reorganization allegedly diluted the shareholder’s voting powers of influence. Direct suits are brought by a member who suffered damages caused by the acts of the organization, which were decided on by the other shareholders.
When the direct or immediate injury has been suffered by the shareholder, direct action is typically permitted to move forward. The same type of case might also be filed as a class-action lawsuit.
Company directors have the duty to pursue litigation against a person or party that allegedly harmed the corporation they represent.
When the principals of an organization, including the board of directors, choose not to pursue a legal remedy against the alleged wrongdoers, a shareholder can do so.
A shareholder derivative suit is brought by a shareholder on behalf of a corporation against another shareholder or third party alleged to have harmed the company.
Often, the third party is an insider of the corporation, such as an executive officer or director, and often a particular individual who has been identified for an alleged breach of contract, fraud, or breach of fiduciary duty.
Derivative suits may also be filed against a third party, which may include the company’s trusted advisers or accountants who have harmed the company.
When management fails to pursue a legal claim against the offending party, a derivative suit allows a shareholder to take the lead by filing a lawsuit on the company’s behalf to pursue damages caused by the board and directors for refusing to do anything about a legitimate legal claim presented by the corporation.
Shareholder direct and derivative lawsuits are notoriously complex and may only be brought in limited circumstances, which means a precise legal pursuit must begin with a valid cause of action, which is strengthened by the help of our experienced attorney.
If you believe wrongdoing exists within the company where you are a shareholder, either by other shareholders or management, contact our experienced Florida & California LLC direct and derivative shareholder disputes attorneys at the MLG Business Litigation Group today by calling (786) 706-9228 to determine which remedies will allow you to move forward with the best legal solutions available for your unique circumstances.
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