Anybody know of derivative suits against CEO's who squanderred money

Derivative suits are lawsuits that are brought by shareholders of a corporation against officers and board members of the corporation to recover damages for some harm. In theory, the corporation itself (through a shareholder or shareholders) is suing the officers or directors. Many people criticize derivative suits because they usually involve a lawyer finding somebody under some rock who may own small amounts of stock in some corporation suing over a speculative harm. The lawyers in such cases end up taking a large sum of money to settle the suit for a harm that is speculative, and the money paid does little to deter or alter the behavior of executives or boards members.

In the current crisis however, derivative suits can be a useful mechanism for punishing executives and board members who squandered money away. These suits can be used to chase these people to the ends of the earth and pick their pockets clean of any money they had.

reply to post by hotpinkurinalmint


It won't work as long as there are politically powerful people protecting them.

Yes that was a one liner.