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Tampa Business Litigation Attorneys / Tampa Derivative Actions Attorney

Tampa Derivative Actions Attorney

Shareholders in corporations have many rights and responsibilities, including the right to file a shareholder derivative action. Bringing a derivative action can become a complex matter, but it is often important to ensure the rights of the shareholders are protected. Our Tampa derivative actions attorney can provide the legal advice you need and help you through the process.

What are Derivative Actions?

Derivative actions are legal proceedings brought by shareholders on behalf of a corporation. The purpose of the action is to obtain damages sustained by the corporation due to the misconduct of corporate directors, officers, or shareholders. Derivative actions are civil actions that are necessary when a shareholder wants to hold individuals accountable for actions that harmed the business and its shareholders.

Shareholders do not act as individuals in derivative actions but rather, as representatives of the corporation. Due to this, shareholders who bring derivative actions do not receive damages directly but instead, they try to protect the best interests of the business and its shareholders. Any damages sustained by the corporation are then distributed to all shareholders.

There are many actions of corporate officers and directors that can result in a derivative action. Embezzlement, self-dealing, and fraud are just a few of these.

How to Bring a Derivative Action in Tampa

There are many steps involved in bringing a derivative action in Tampa. These are as follows:

  • Demand letter: Derivative actions officially begin when a demand letter is sent to the board of directors of the corporation. The demand letter asks the corporate officers and directors to take specific steps to correct the wrongdoing. If the board of directors does not take action, the shareholder can proceed with a lawsuit.
  • Filing the lawsuit: Derivative action lawsuits must be filed in the name of the corporation and must state the specific acts of wrongdoing by the officers, directors, or majority shareholders.
  • Discovery: One of the first steps of any lawsuit is the discovery phase, and this holds true for derivative actions, as well. During discovery, each side presents the evidence and information they are going to use during the trial. This places each side on equal ground. There are many ways discovery is conducted including requesting documents, taking depositions, and other methods.
  • Trial: If the parties cannot reach a settlement, the case might proceed to trial. During a trial, a judge or jury will listen to both sides, review evidence, and determine whether the defendant is liable for damages sustained by the corporation. If a settlement is reached, the judge must approve it and can require full disclosure of the details of the settlement to the other shareholders.

Our Derivative Actions Attorney in Tampa Can Assist with Your Case

Derivative actions are complicated and time-consuming. At BBDG Law, our Tampa derivative actions attorney can guide you through the process and ensure you receive the best possible outcome. Contact us today by calling (813) 221-3759 or fill out our online form to schedule a consultation and to learn more about how we can help with your case.