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Sub-category of: Business Litigation

When directors or officers of a company commit a wrongdoing such as mismanagement or fraud, the value of the company’s shares decreases.  Often, the only means that shareholders can rebuild the value of the company is taking action against the directors or officers for their wrongdoing in a derivative action.  A derivative action is an action brought by a shareholder on behalf of the corporation to benefit the corporation. Bringing such an action allows the shareholders and the corporation as a whole to recover for losses the directors and officers have caused.  The most common derivative actions are brought against directors and officers of the corporation for conduct which breaches their fiduciary duty to the shareholders and company. If you would like us to investigate your claim, contact our office for assistance.

2007 Staehr v. Cardinal Health

Shareholder derivative claims for alleged breach of fiduciary duty, abuse of control, gross mismanagement, waste of corporate assets and unjust enrichment by officers and directors of Cardinal Health.

Settlement: $70 million returned to Cardinal Health Corporation

2007 Leonard v. UnumProvident Corp.

Shareholder derivative claims for alleged breach of fiduciary duty, abuse of control, gross mismanagement, waste of corporate assets and unjust enrichment by the directors and officers of UNUMProvident Corporation related to the use of alleged hidden contingent commissions and kickbacks in the sale of group insurance.

Settlement: Enactment of corporate governance prohibiting continued use of hidden contingent commissions and increasing transparency for customers