Parallel Derivative Action Settlement Outcomes

The authors analyze the settlement outcomes of shareholder derivative actions associated with securities class action settlements between 2019 and 2021.

Building on Cornerstone Research’s study of securities class action settlements, the authors analyze settlement outcomes of shareholder derivative actions associated with securities class actions that settled between 2019 and 2021. A shareholder derivative action is a lawsuit brought by a corporation’s current shareholder(s) on behalf of the corporation.

These parallel lawsuits—a securities class action and a shareholder derivative action with the same or similar underlying allegations—are fairly common. In this report, Laarni Bulan and Matthew Davis discuss these suits in the context of allegations and defendants, therapeutic provisions, plaintiff attorney fees, and settlement outcomes.


The views expressed herein are solely those of the authors, who are responsible for the content, and do not necessarily represent the views of Cornerstone Research.