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

A class action lawsuit is a legal action that is brought by one or more individuals on behalf of a group of people who have been affected by the same issue. Class action lawsuits typically seek damages for the affected group and may also seek to change a law or policy that the group believes is unjust. A derivative action, on the other hand, is a lawsuit brought by a shareholder on behalf of a corporation. This type of legal action is meant to protect the corporation from its own management, or from outside parties that may pose a threat to the corporation. The relationship between a class action lawsuit and a derivative action is that they both involve seeking damages or other relief on behalf of a group of people who have been harmed in some way. They differ in that a class action lawsuit is brought on behalf of a group of individuals, while a derivative action is brought on behalf of the shareholders of a corporation. In Washington, class action lawsuits are generally governed by the state’s Consumer Protection Act or other applicable laws. Derivative actions, however, are governed by state common law or federal securities laws.

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

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