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

A class action lawsuit and a derivative action are different legal options available to address a wrong suffered by a group of people. In a class action lawsuit, the members of the class (or group of people) bring a single lawsuit on behalf of all the members of the class. A derivative action is when a lawsuit is brought by one member of the class on behalf of all other members of the class. In Hawaii, a class action lawsuit can be brought when the same wrong has been done to all members of the class. The members of the class must share similar legal claims and be numerous enough that it is more efficient to have a single lawsuit than to have many individual lawsuits. A class action can also help reduce costs and allow members of the class to get a more meaningful remedy. In a derivative action, one member of the class sues another member or entity on behalf of all other members of the class. This is usually done when an individual has suffered harm due to another’s wrongful acts or when a corporation has wrongfully harmed its shareholders. In these cases, a single lawsuit can help protect the interests of the entire class. Class action lawsuits and derivative actions are both legal options available to a group of people who have suffered similar harms in Hawaii. They are different, however, in that a class action involves a single lawsuit brought by all members of the class, while a derivative action involves a single lawsuit brought by one member of the class on behalf of all other members.

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

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