Derivative Actions

Atlanta, Georgia Derivative Action and Trial Lawyers

The law firm of Austin & Sparks has experience in successfully handling derivative action claims brought by shareholders against board of directors on behalf of the company as well as successfully defending derivative actions filed by shareholders. When an individual owns stock in a company, it is a normal expectation that the board of directors will put the best interests of the company first. Furthermore, it is expected that the board of directors will execute a competent strategy for profitability and growth. In fact, the board of directors has a legal duty to protect the interests of the shareholders. However, this is not always the case. In certain instances, the board of directors will engage in unacceptable behavior that is against the best interest of the company. In some situations, the board members engage in what is called "self-dealing", and act solely with their own interests in mind - even when those interests are contrary to what is in the interest of the company as a whole. On the other hand, the board members may be acting in the best interest of the corporation but a disgruntled shareholder does not agree. Derivative actions are very complex, and must be acted upon quickly before too much damage is done. If it becomes necessary to sue a company through a derivative action or you own a company facing a derivative action, it is critical that you hire a law firm with the ability to aggressively handle that action with knowledge and efficiency. That law firm is Austin & Sparks.

We represent investors and shareholders as well as corporations in lawsuits alleging:

  • Corporate mismanagement;
  • Fraud;
  • Embezzlement; and
  • False reporting of financial status.

Contact the law firm of Austin & Sparks today for an initial consultation regarding any derivative action claim you might have or you may be facing.