At HSGLaW, we hold powerful corporations and executives accountable for misconduct that harms investors. Our Securities & Shareholder Derivative Litigation practice group has a strong track record of pursuing complex financial cases involving securities fraud, breaches of fiduciary duty, insider trading, and shareholder abuse.
Whether we’re filing a class action on behalf of defrauded shareholders or pursuing a derivative action against a board of directors, our goal remains the same: to protect investors and enforce corporate responsibility.
What Is Securities and Shareholder Derivative Litigation?
These cases involve wrongdoing in the corporate world — often at the highest levels. They typically fall into one of two categories:
Securities Class Actions
These lawsuits are brought by groups of investors who purchased stock or other securities and suffered losses due to fraudulent, misleading, or illegal conduct by a company or its executives. Violations often include:
- False statements to shareholders
- Insider trading
- Accounting fraud
- Failure to disclose risks or material information
Shareholder Derivative Actions
These lawsuits are brought by shareholders on behalf of the corporation itself. The goal is to hold directors or officers accountable for damaging the company through fraud, mismanagement, or self-dealing. Common claims include:
- Breach of fiduciary duty
- Insider selling
- Unjustified executive compensation
- Failure to conduct due diligence
- Corporate waste or misappropriation
In both types of cases, our firm acts as a watchdog for corporate behavior — ensuring that investors aren’t left holding the bag after executives act in bad faith.
Common Issues We Litigate
We regularly handle cases involving:
- Securities fraud and misrepresentation
- Failure to disclose material facts or risks
- Breach of fiduciary duty by directors or officers
- Insider trading and excessive executive compensation
- Hedge fund or broker fraud
- Churning and unauthorized trading
- Junk bond and reverse-merger schemes
- Unsuitable investment recommendations
- Failure to diversify portfolios
- High-pressure sales tactics
- Negligent supervision by brokerage firms
Our team is skilled in uncovering financial misconduct and working with economists, auditors, and securities experts to build strong, fact-based cases.
Notable Cases and Experience
HSGLaW has been lead or co-lead counsel in major shareholder and antitrust litigation throughout the country. Examples include:
In re King Pharmaceuticals Inc. Derivative Litigation
We served as lead counsel in a shareholder derivative case against the company’s board of directors and certain executives, alleging financial misconduct and breaches of fiduciary duty.
In re Caremark RX, Inc. Stock Option Litigation
As co-lead counsel, we pursued claims against the company’s board related to improper stock option practices. This case involved deceptive backdating or misreporting of executive compensation.
Direct General Corp. Derivative Litigation (M.D. Tenn.)
This case focused on financial manipulations, insider trading, and misconduct surrounding a proposed private-equity sale. We challenged self-dealing and board-level negligence.
In re HCA Inc. Shareholder Litigation (M.D. Tenn.)
We represented shareholders in a case involving alleged breaches of fiduciary duty in connection with a private-equity buyout — a transaction alleged to benefit insiders at the expense of public shareholders.
Who We Represent
We represent a broad range of plaintiffs in securities and corporate misconduct cases, including:
- Individual investors
- Institutional investors
- Pension funds and retirement plans
- Union funds and employee trusts
- Whistleblowers and minority shareholders
Whether you’ve been harmed by misleading disclosures, insider trading, or anticompetitive behavior, we can help you understand your rights and pursue appropriate legal action.
Our Approach
We combine aggressive legal advocacy with deep knowledge of securities law, corporate governance, and fiduciary responsibility. Our team works closely with financial analysts, forensic accountants, and industry experts to:
- Analyze trading and stock performance data
- Review regulatory filings and financial reports
- Identify insider transactions and audit failures
- Prepare detailed complaints and motion filings
- Pursue court approval for class action status
We also have experience coordinating with state and federal agencies, including the Securities and Exchange Commission (SEC), Department of Justice (DOJ), and state attorneys general.
Frequently Asked Questions
What is the goal of a shareholder derivative lawsuit?
To hold company insiders accountable for harm caused to the corporation — not just to individual shareholders. These lawsuits seek to recover damages, reverse harmful decisions, or force changes to corporate governance.
What’s the difference between securities fraud and breach of fiduciary duty?
Securities fraud typically involves misleading or false information that causes investors to buy or sell stock under false pretenses. Breach of fiduciary duty involves wrongdoing by corporate insiders who owe legal responsibilities to the company and its shareholders.
How much can I recover in a securities class action?
Recovery depends on the size of the loss, the number of plaintiffs, and the outcome of the case. We fight to maximize settlements for every client, especially in cases where fraud significantly impacted stock value.
How are attorneys paid in these cases?
We handle most securities and shareholder cases on a contingency fee basis, meaning you pay nothing unless we secure a recovery.
Why Choose HSGLaW?
- Proven Track Record: Successful outcomes in complex national litigation
- Leadership Experience: Frequently appointed lead or co-lead counsel in class and derivative cases
- Investor-Focused: We represent shareholders, not corporations
- Cross-Practice Strength: Experience in antitrust, securities, labor, and ERISA strengthens our legal strategy
When financial misconduct threatens your investments or corporate governance fails, we’re here to help you set it right.
Contact HSGLaW
If you’ve suffered financial losses due to fraud, self-dealing, or executive misconduct, HSGLaW is ready to help. Reach out to discuss your options — and join the fight for corporate accountability.
Schedule a confidential consultation today.
