Since at least the 1930s, corporate managers and their attorneys have denounced shareholder derivative suits.1 They have painted such actions as dangerous vehicles for unscrupulous plaintiffs' attorneys to manufacture frivolous claims that permit stockholders to harass faithful, hard-working corporate officers and directors.2 In particular, critics have charged that derivative suits have allowed aggressive plaintiffs' lawyers to manipulate unsophisticated, impressionable small investors (or, worse yet, to collude with repeat or "professional plaintiffs") to pursue groundless litigation against corporate management for the purpose of extracting unreasonable settlements.
|Original language||English (US)|
|Number of pages||44|
|Journal||Rutgers Law Review|
|State||Published - Jun 1 2015|
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