Category Archives: Shareholder Disputes
Where Should a Shareholder File a Lawsuit?
Are you a shareholder who is considering taking legal action against a corporation? Whether you are considering filing a direct action or a derivative action, it is crucial that you understand the appropriate venue for your case. At Pike & Lustig, LLP, we have deep experience with shareholder law. Here, our Miami shareholder dispute… Read More »
Firefighter Pension Fund in Florida Reaches Multi-Million Dollar Shareholder Lawsuit Settlement With Investor Carl Icahn
In May of 2024, Bloomberg Law News reported that a firefighter pension fund in Florida has reached a multi-million dollar settlement of a shareholder lawsuit involving famed billionaire investor Carl Icahn. The settlement agreement brings an end to a multi-year shareholder derivative lawsuit involving the Xerox Corp. takeover of HP Inc. Here, our West… Read More »
The Three Most Common Grounds on Which a Shareholder Derivative Claim Can Be Dismissed
A shareholder derivative lawsuit is a legal claim filed by a shareholder or group of shareholders on behalf of the corporation itself. It is often but not always filed against the company’s officers, directors, or another key insider. When a shareholder derivative lawsuit is filed, corporate leaders typically move for an immediate dismissal. Here,… Read More »
Tesla Seeks to Revive Compensation Package for Elon Musk (Previously Blocked By Judge)
On April 18th, 2024, the New York Times reported that Tesla is seeking to revive the approximately $56 billion compensation package for Chief Executive Officer (CEO) Elon Musk. The package was voided earlier this year by a Delaware Chancery Court after a shareholder dispute was filed. Here, our West Palm Beach shareholder dispute attorney… Read More »
Shareholder Conflict: Delaware Judge Voids Elon Musk’s Tesla Compensation Plan
On January 31st, 2024, the Associated Press (AP) reported that a Delaware judge voided the Tesla compensation plan for Tesla CEO Elon Musk on the grounds that it is “excessive” and there constitutes a breach of fiduciary duty by the company’s Board of Directors. For his part, Elon Musk has stated his intent to… Read More »
Netflix Prevails in a Shareholder Lawsuit Over Account-Sharing
On January 8th, 2024, Reuters reported that Netflix prevailed in court in a shareholder lawsuit. The lawsuit—which was brought on behalf of Netflix shareholders between January of 2021 and April of 2022—alleged that the company made material misrepresentations about the extent to which account-sharing was hurting its growth. Here, our Miami shareholder dispute attorney… Read More »
Meta Seeking Dismissal of Shareholder Lawsuit Against Corporate Directors
On December 20th, 2023, ABC News reported that Meta—the Silicon Valley-based social media giant—is seeking the dismissal of a shareholder lawsuit that was filed against several of its corporate directors. The lawsuit makes the relatively novel argument that officers at the Fortune 500 company owe duties not just to the corporation itself, but also… Read More »
Can a Shareholder Hold a Corporate Liable for Excessive Executive Compensation?
How much should a corporation pay its executives? The answer is “it depends.” What constitutes appropriate compensation is highly case-specific. That being said, there are certainly some circumstances in which a corporation may pay its executives so much that it constitutes unreasonable excessive compensation. It could give rise to a claim by shareholders. Here,… Read More »
What People Get Wrong About Shareholder Derivative Lawsuits
There are two different types of shareholder lawsuits: 1) Direct actions and 2) Derivative actions. A derivative action is a type of legal claim through which a shareholder (or group of shareholders) seeks to take legal action on behalf of the corporation itself. Shareholder derivative actions are notoriously complex. Below, our West Palm Beach… Read More »
Federal Appellate Court Revives Privacy-Based Shareholder Lawsuit Against Meta
According to a report from Reuters, the Ninth Circuit Court of Appeals has revived a shareholder lawsuit filed against Meta. The tech giant that owns Facebook and Instagram is facing a complaint from shareholders for harm related to alleged data privacy violations. In this article, our Miami shareholder litigation attorney discusses the dispute in… Read More »