Business Organization & Shareholder Derivative Actions

Shareholder derivative litigation can be the driving force of change when corporate fraud, misconduct or mismanagement exposes a company to risks and investors to significant losses. At Reich & Binstock in Houston, our attorneys know how to hold insiders accountable and improve the organization of businesses in the best interests of shareholders.

We represent shareholders throughout the U.S. when executives, directors and board members cause harm to corporations large and small. We have successfully led and have been co-counsel on several shareholder derivative actions against companies that have violated federal securities laws or acted against the interests of shareholders.

Filing Or Joining A Shareholder Derivative Lawsuit

Shareholder derivative action can be filed on behalf of a single shareholder or a class of shareholders with smaller investments in a company's stock. Class action litigation allows for economic pursuit of redress when cost-effective litigation might not otherwise be possible. Typically, an individual or institutional shareholder serves as the representative plaintiff in the lawsuit on behalf of other shareholders.

Shareholder lawsuits can be filed to address the following forms of fraud, misconduct and mismanagement that have taken place within a corporation:

  • Insider trading
  • Options backdating
  • Inaccurate or misleading financial statements
  • Accounting inaccuracies
  • Self-dealing by insiders
  • Breach of fiduciary duty
  • Conflicts of interest
  • Executive compensation improprieties
  • Legal violations

Your participation in a shareholder derivative action with Reich & Binstock can hold corporate officers accountable for wrongdoing, remove certain officers and directors, repair corporate governance and pursue financial recovery for shareholders and the company. When the corporation will not act on its own to redress harm, we take aggressive action on behalf of concerned shareholders to protect value, restore confidence and set the stage for responsible governance.

We can also advise you regarding your rights and options if you are considering joining a shareholder derivative class action at any level. Please call us in Houston, Texas, at 713-352-7883 or 877-643-3099 toll free or complete our confidential online form to request a free, no-obligation consultation with a lawyer.