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Shareholder Derivative Suit

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O00O

Junior Member
What is the name of your state? CA

I already know what the Shareholder Derivative Suit (SDS) is and what it's used for, so no explanation necessary.

I am wondering if anyone on here has experience bringing such a suit and knowledge of what sort of facts/information one needs to initiate the suit.

For example, does one need concrete evidence of wrongdoing or breach of a fiduciary obligation if used against the directors/officers of a company, or evidence of a breach of contract or coercive business dealings if used against a 3rd party on behalf of the company?

The trouble with the situation I'm currently dealing with is a lack of information issuing forth from the company with respect to internal events and also with respect to settlement negotiations with a 3rd party company who basically screwed the 1st company over regarding an exclusive supply contract (1st company is the supplier, 3rd party company is the recipient). I know the 3rd party company kept changing the design specifications and refused receipt of certain shipments, but I do not know if this was a breach of the agreement without seeing the contract.

Would the contract between the two be accessible to shareholders? I know it isn't available to the public because it isn't in either of the companies' SEC filings, I've searched.

Thanks for any information you care to share.

What is the name of your state? CA
 



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