Shareholder Derivative Litigation

Zamansky LLC represents shareholders seeking to bring derivative actions on behalf of a corporation.

Our shareholder derivative litigation practice helps shareholders bring derivative actions on behalf of a corporation to assert its rights and interests when officers, directors, or management fail to do so.  A shareholder can recover monetary losses suffered by the corporation or seek any variety of corporate governance reforms.  Zamansky LLC has derivative litigation experience across multiple jurisdictions and various industries.  The following is a partial list of currently pending and notable shareholder derivative actions brought by Zamansky LLC to recover losses:

Celadon Group Inc. Derivative Litigation

Zamansky LLC is sole counsel in this shareholder derivative action brought on behalf of investors and Celadon Group Inc. to recover damages from alleged misconduct regarding Celadon’s financial reporting and its joint venture and transactions with 19th Capital Group, LLC and Element Transportation, LLC.

Catalyst Hedged Futures Strategy Fund Derivative Litigation

Zamansky LLC is sole counsel in this shareholder derivative action brought on behalf of investors and the fund to recover damages resulting from the misleading representations made by the fund about its investment strategy.  The Catalyst Fund was marketed and sold as a low risk fund which seeks capital appreciation and capital preservation in all market conditions, with low volatility and low correlation to the US equity market even though it traded options and derivatives in violation of its objective.

Ivy Investment Management Company Derivative Litigation

Zamansky LLC is sole counsel in this shareholder derivative action on behalf of investors and the Ivy Asset Strategy Fund to recover damages resulting from the purchase of private securities in a start-up and potentially criminal company in the field of professional boxing promotion.  Zamansky LLC successfully overcame its first motion to dismiss and is proceeding through the discovery phase of this case.

Third Avenue Management Company Derivative Litigation

Zamansky LLC represented a shareholder in the first derivative action filed against the mutual fund trustees for failing to maintain a sufficient liquidity plan and violation of the 25% limit on illiquid assets in the prospectus for the Third Avenue Focused Credit Strategy Fund, a mutual fund which once had $1 billion in assets.  Zamansky LLC was instrumental in obtaining a $25 million settlement in this action.

Harbinger Capital Partners Funds Derivative Litigation

Zamansky LLC was lead counsel for the fund’s limited partners in a $3 billion shareholder fraud and derivative claim for losses in the Harbinger Funds relating to LightSquared.  The limited partners were misled into investing in the fund and holding their positions, and once they learned the truth about the fund’s stake in LightSquared, it was too late to redeem their interests.  This action has been resolved through settlement.