What is the relationship between a class action lawsuit and a derivative action?

A class action lawsuit is a lawsuit in which a large group of people join together to claim compensation from another party. A derivative action is a type of class action lawsuit in which an individual files a lawsuit on behalf of a group of people. In California, class action lawsuits allow a large group of people to join together to sue a company, institution, or other entity for damages or other relief. A derivative action, on the other hand, is brought by an individual on behalf of a group of people, most commonly stockholders of a corporation. This type of lawsuit takes place when the corporation has failed to pursue a legal claim that would benefit the stockholders. In short, a class action lawsuit is when a group of people join together to sue a third party, and a derivative action is when an individual files a lawsuit on behalf of a group of people. Both types of lawsuits are important components of the California civil justice system. They allow people to seek justice and compensation for wrongs done to them, and to hold corporations, institutions, and other entities accountable for their actions.

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What is the relationship between a class action lawsuit and a derivative action?

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