What is a shareholder class action?

A shareholder class action is a type of lawsuit in South Carolina that is brought by shareholders of a particular corporation against the corporation itself or its officers and directors. It is one way for shareholders to seek compensation for any losses due to corporate wrongdoing. A shareholder class action is filed on behalf of all shareholders of a corporation, which means the shareholders will usually be represented by a lawyer who will serve as the lead counsel or class representative. The main purpose of a shareholder class action is to recover money or other assets that were lost by the company or its shareholders due to fraud, mismanagement or other wrongful acts. The lawsuit typically seeks damages or restitution from the company’s officers and directors in their official capacities and/or seeks to hold them personally liable for any monetary losses. If the class action is successful, the court will likely award money as compensation to the shareholders for any losses they suffered. This money may be distributed to the shareholders either directly or through a trust or other entity. The court may also award other forms of compensation, such as legal or investigative costs, punitive damages, or injunctive relief.

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What is a shareholder class action?

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