Toll Free: 1-888-638-4847
Law Offices of Howard G. Smith
3070 Bristol Pike, Suite 112
Bensalem, PA 19020
Telephone: (215) 638-4847
Facsimile: (215) 638-4867
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Copyright © 2006-2017 Law Offices of Howard G. Smith
Frequently Asked Questions about Derivative Cases
1.  What is a shareholder derivative case?
     A shareholder derivative case is a lawsuit where a
     shareholder asserts the legal rights of a Company where
     Company Executives refuse to assert the Company's own
     rights and their refusal harms the shareholders.

2.  Why would a Company's Executives fail to assert the legal
     rights of the Company?
     There are varying examples, most dealing with Company
     Executives failing to assert the Company's rights because the
     Executives themselves are profiting from the wrongdoing.
     One common type of shareholder derivative suit occurs
'    when Company Executives steal money from the Company.
     The Executives will not act on the Company's behalf to
     remedy the theft because they themselves are the thieves.
     The shareholders therefore must act to remedy the situation.


3.  How does a shareholder derivative suit help the
     shareholders?
     By forcing the Company's executives to recompense the
     Company for their wrongful actions, the shareholders
     increase the value of their shares.  Additionally, the
     shareholders may force changes in corporate governance to
     prevent a similar event from occurring in the future.

4.  What is expected of me if I file a lawsuit?
     You must agree to keep at least a few shares of stock until
     the end of the litigation. 

5.  How long does the the litigation take?
     Generally, the litigation takes 2-3 years. 

6.  Does it cost me anything to file a lawsuit?
      No.  The Law Offices of Howard G. Smith will never ask you
      for any money and will cover any cost or expense of litigation
      from its own funds.
Toll Free: 1-888-638-4847