Corporate Governance and Shareholder Derivative Litigation
Institutional investors have witnessed immense corporate scandals that caused enormous losses to their investment portfolios over the past decade. An increasing body of evidence suggests that enhanced governance leads to enhanced returns, and poor governance practices and procedures correlate with both poor corporate financial performance and diminished stockholder value.
Girard Gibbs has extensive experience representing institutional investors who demand sound corporate governance practices and believe that the primary responsibility of officers and directors is to direct the corporation in the interest of all the shareholders, and not solely for the benefit of corporate insiders. We help our clients enforce their shareholder rights when insiders breach fiduciary obligations owed to the corporation and its shareholders.
Through derivative litigation, institutional shareholders may bring claims of the corporation against officers and directors who breach fiduciary duties, waste corporate assets, or engage in decisions that expose the company to harm or undue risk. In addition to achieving a monetary benefit for the corporation, derivative actions may also result in governance reforms, such as separating the Chairman and CEO and functions, staggered board elections, appointing independent directors, modifying stock option plans, assuring audit committee independence, or enforcing insider trading rules and practices.
Girard Gibbs’ Securities Litigation Practice Group has a well-established record representing institutional investors who seek to protect shareholder rights and enhance shareholder value. Our clients hold directors and officers accountable for misconduct or other acts of corporate harm, and demand integrity and accountability in corporate boardrooms.
- In re Oxford Tax Exempt Fund Securities Litigation
Girard Gibbs served as co-lead counsel in this class and derivative litigation brought on behalf of a real estate limited partnership with assets of over $200 million. Read More »
- In re Towers Financial Corporation Noteholders Litigation
This securities and RICO class action was brought against promoters and professionals associated with failed investment scheme described by United States Securities and Exchange Commission at the time as the “largest Ponzi scheme in U.S. history.” Read More »