Shareholder Derivative Litigation

Brodsky & Smith, LLC has been appointed by the Court to serve as lead or co-lead counsel in various shareholder derivative litigation matters across the country.  This type of litigation involves shareholders bringing actions on behalf of the corporation against persons who have harmed the corporation.  For example, shareholders might claim that the officers and directors of a company breached their fiduciary duties to the company or its shareholders by engaging in "self-dealing," insider selling, and/or arranging a corporation's affairs in ways that benefit an officer and his friends at the expense of the corporation.  These actions allege breach of fiduciary duties, insider selling violations, unjust enrichment, wasting of corporate assets and corporate mismanagement.

Our firm's clients attempt to achieve corporate governance on behalf of the companies.  The adoption of effective corporate governance policies provide adequate shareholder control of the corporation, effective monitoring of management’s performance, effective oversight of the board’s resolutions, close alignment of management and shareholder interests, and effective deterrence of fraud and other forms of non-compliance.  Successful governance reforms will make corporate directors and executives more accountable to shareholders; instill confidence among investors in the integrity of financial markets; and protect employees, bond-holders, and other corporate constituents from fraud and egregious corporate conduct. 

The following are cases in which Brodsky & Smith, LLC currently serves as sole lead or co-lead counsel in shareholder derivative litigation matters in state and federal court across the country: In re OCA, Inc. Shareholder Derivative Litigation (E.D. Louisiana  2005); In re Pfizer Shareholder Derivative Litigation, U.S.D.C. SDNY (1:04-10075); In re Genta Shareholder Derivative Litigation, (U.S.D.C. D. NJ 04-3169); In re Merck & Co. Shareholder Derivative Litigation, New Jersey Superior Court, Atlantic County (6939-05); In re Express Scripts Shareholder Derivative Litigation (State Court Missouri 2004); In re Avaya Shareholder Derivative Litigation (D.N.J. 2005); In re Visteon Shareholder Derivative Litigation (Michigan State Court 2005).

The firm has been appointed as local counsel and/or is assisting lead counsel in the following matters: In re Viacom Shareholder Derivative Litigation (State Court New York 2005) (Court approved liaison counsel); In re Systemax Shareholder Derivative Litigation (State Court New York 2005) (Court approved liaison counsel); In re Taser International Shareholder Derivative Litigation (D. Arizona 2005); In re Marsh McClennann Companies Shareholder Derivative Litigation (S.D.N.Y. 2004); In re Wireless Facilities, Inc. Shareholder Derivative Litigation (S.D. California 2004); In re Regeneron Shareholder Derivative Litigation (State Court New York 2004); In re NBTY Shareholder Derivative Litigation (New York State Court 2004) (local counsel); In re Red Hat Shareholder Litigation (Delaware State Court 2003).

The firm also served as lead or co-lead in the settled matters of In re Kindred Derivative Shareholder Litigation Kentucky State Court (Jefferson Circuit Court, Division 13 2002); In re Sagent Derivative Shareholder Litigation, 02-0709 (PJH) (N.D. California 2002).  Our firm also played an active role assisting lead counsel in settling In re Charter Communications, Inc. Derivative Shareholder Litigation, No. 022-10625 (Circuit Court, City of St. Louis, State of Missouri, 2002).

If you are aware of or suspect any practices that are or may be in violation of the securities laws or of fiduciary duties to a corporation's shareholders, occurring now or at some time in the past, please contact us via phone at toll free 877-LEGAL-90 (877-534-2590), by email at or by visiting our report a fraud link.

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