Taking Action to Protect Shareholder Rights
When corporate executives act in ways that adversely impact a company’s stock and performance, shareholders might think that they lack any power to address such malfeasance.
This is far from the truth.
In fact, shareholders harmed by breaches of fiduciary duty committed by company directors and officers can employ effective strategies yielding broadly beneficial effects. A proven shareholder rights legal team can help with the protection of shareholder rights and take purposeful action against harmful conduct like the following:
- Officers’ varied conflicts of interest
- Insider trading
- Failure to fully disclose material information to shareholders
- Inadequate scrutiny and follow up on key corporate matters
- Failure to properly supervise staff
- Failure to routinely attend board matters
Such actions – singly or in concert – understandably diminish investors’ confidence. Moreover, they often lead to material financial pain caused by precipitous drops in stock value and other factors.
Shareholder Derivative Action: A Key Accountability Tool
Powerful beneficial effects often result when even a single shareholder files a shareholder derivative action addressing corporate fraud. A lawsuit can “recover investment losses, remove bad-acting officers and directors, improve long-term value, recoup ill-gotten gains, achieve corporate governance reforms and vindicate shareholders’ voting rights.”
Such a remedy is one that a shareholder or group of shareholders can effectively pursue with help from an experienced shareholder rights law firm.
A shareholder derivative lawsuit never costs plaintiffs a dime. A successful recovery will be paid by corporate defendants and help ensure that justice is obtained by investors in publicly traded entities.
