Shareholders' Derivative Actions

Shareholders' Derivative Actions (also known as Derivative Actions or a Stockholder's Derivative Suit) are lawsuits brought by individual company shareholders in the name of the corporation in which they hold stock. They most commonly arise when one or more stockholders believe management are acting improperly, or are failing to take action to defend the company's rights. Examples include managers selling company assets to themselves or to outsiders at below market value - thereby diluting shareholder value and breaching the officers' fiduciary duties - or a failure by management to defend the company's patents and trademarks. It is important to note that because shareholders' derivative actions are brought in the name of the company, any compensation won goes to the company and not directly to the plaintiffs who initiated the suit (though, as shareholders, the plaintiffs do benefit, albeit indirectly).

These suits represent a highly specialized form of law which many firms are not well-equipped to handle. The Philadelphia-based firm of Danziger Shapiro & Leavitt, however, brings a wealth of experience to this legal area. We typically handle shareholders' derivative actions on a contingency fee basis. In such situations our final remuneration will be determined by the size of the ultimate settlement, and must be approved by the court.

Client Reviews
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Adam has been my corporate attorney for over 10 years. He is extremely professional and knowledgeable. He efficiently moves through the judicial system and always keeps the best interest of his client in the foreground. Janet
★★★★★
We hired Adam to represent us for a patent dispute. He was excellent from the very beginning. He was thorough, detailed, honest, forthright, succinct, and available to us for questions at all times. Needless to say he achieved the best outcome we could have hoped for, and I cannot recommend him highly enough. I only wish I could have given him a check mark on all of the attributes listed on LinkedIn, but it would only allow 3. Matt
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All of us at Be a Part of the Conversation are indebted to Doug Leavitt and the staff at Danziger Shapiro & Leavitt for their guidance in helping us to establish and grow our nonprofit organization. Doug has been an invaluable resource, providing insight and understanding from the very beginning. In addition to answering our endless questions, he is also incredibly proactive – tirelessly working to ensure that our organization is moving forward in the best light possible. I honestly do not know where we would be today without the support and generosity of Doug and the team at Danziger Shapiro & Leavitt. Kim
★★★★★
We retained Doug to help us in a business dispute regarding several investments we had in restaurants and real estate in Cape May. Doug proved to be skilled in both litigation and negotiation, as well as reducing the settlement to writing, which required a thoughtful approach and high attention to detail to protect out interests because we had to do take back financing. The security agreements had to be carefully written so we could take back the restaurant and IP if the need arose- which it did! Thankfully everything was in place and Doug was able to get everything back and we came out unharmed. It is clear to us that Doug truly cares about his clients. Unless something like this happens to you, you wouldn't know how important it is to have the right attorney. We do. Brian
★★★★★
I am an officer in a Civil Engineering firm in New Jersey with over 45 employees and have retained many attorneys in the past. However, Doug Leavitt has helped my firm in reviewing and developing new corporate documents and professional agreements. Doug is an excellent attorney who is very personable and knowledgeable and a pleasure to work with. Paul