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derivative action
(redirected from Derivative suit)

   Also found in: Legal, Financial, Wikipedia 0.01 sec.
derivative action [də′riv·əd·iv ‚ak·shən]
(control systems)
Control action in which the speed at which a correction is made depends on how fast the system error is increasing. Also known as derivative compensation; rate action.


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of the Branstetter firm said the derivative suit is different from a class-action in that no class of plaintiffs needs to be certified for the case to move forward and the company itself is a defendant in name only.
Abuses of executive compensation-provide no end to work for plaintiffs' lawyers pursuing class-action litigation against, and derivative suits on behalf of, companies that--in issuing options or stock to senior executives--expose themselves to the risk that these grants will be misused though backdating and insider trading.
A shareholder''s derivative suit is another sort of business litigation commonly brought about by one or a group of shareholders as a legal action to prevent or resolve a wrongful act against the corporation.
 
 
 
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