Abraham, Fruchter, & Twersky LLP

Abraham, & Fruchter, Twersky, LLP

Frequently Asked Questions

Derivative Actions

What is a derivative action?

A derivative action is a representative action brought by a shareholder of a corporation on the corporation’s behalf, usually against an officer or director of the corporation. Claims can include wasting of corporate assets and breach of fiduciary duties such as management self-dealing or negligence. The recovery will go to the corporation, which may have a positive effect on share value and corporate governance.