Shareholders – owners of the corporation – have various rights. Some of these rights include:
A shareholder activating their litigation rights to protect their financial interests in a company will typically choose to bring a shareholder derivative action or securities fraud class action.
Shareholder Derivative Action – The shareholder plaintiff pursues claims on behalf of a corporation, and benefits indirectly as a shareholder from any corporate governance reforms or monetary recovery obtained for the corporation.
Securities Fraud Class Action – The shareholder plaintiff pursues claims on behalf of themselves and a class of similarly situated shareholders to obtain monetary and other benefits directly for the members of the class.
Often, these two types of cases are brought at the same time, so that both the shareholders and the corporation can recover for their losses.
Legal Oversight and Alerts for your Investment Portfolio
Every day, headlines reveal instances of corporate misconduct that costs investors hundreds of billions of dollars annually. Because the government lacks the resources to police all the companies traded on America’s stock exchanges, investors must be vigilant in protecting their assets. Stock Watch will advise you of corporate wrongdoing so you can seek justice against company insiders who act to the detriment of the companies you are invested in.
Managed by a team of attorneys, corporate research analysts, and client support specialists, Stock Watch provides peace of mind to investors by monitoring their stocks, alerting them of corporate misconduct, and empowering them to demand corporate accountability. Using a customized database that allows us to maintain and safeguard client information and transaction data, Stock Watch provides shareholders with information so they can make informed choices.
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Investors who have been defrauded may recover some of their financial losses caused by the wrongdoing
If a securities class action results in a settlement, all the shareholders who purchased the stock during the “relevant period” will be able to claim their share of the settlement proceeds. The settlement will be distributed pro rata amongst the shareholders who submit a claim to help compensate the shareholders for a portion of their losses. If you would like to be notified of class action settlements in which you may be entitled to participate, enroll in Stock Watch.
Remedies commonly sought in a derivative action include corporate governance reforms designed to prevent future fiduciary misconduct, removal of officers or directors whose misconduct injured the corporation, monetary payments in the amount the company was damaged, and disgorgement of ill-gotten gains.