shareholder derivative suit

shareholder derivative suit definition - business

shareholder derivative suit

A special type of class action lawsuit filed by one shareholder or by a limited number of shareholders on behalf of all the other shareholders in a firm. An example is a suit filed against a mutual fund's management in which the litigants claim excessive management and distribution fees.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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