Replies to post #587 on Reward Enterprises (fka RWRD)

[Mikefl]

More on Derivative Actions:


A derivative suit is a civil lawsuit filed by shareholders on behalf of a corporation. In these suits, shareholders are looking to enforce corporate rights against directors or other insiders.

Derivative lawsuits differ from class action lawsuits, in which a large group of plaintiffs -- either shareholders or other entities -- bring a suit in their own right.

In the class action arena, the law specifically favors having institutions serve as lead plaintiffs. But there is no law that governs who should be a lead plaintiff in a derivative suit, in part because derivative suits are governed by state law.

And, unlike in class action lawsuits, plaintiffs are not forced to wait 60 days before filing an action.

Before filing a Derivative claim there are certain criteria that have to be met. Also note that in a Derivative suit the recovered monies go back into the company and not back to the claimant. I would suggest consulting a corporate SEC savvy attorney before initiating any actions.