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Corporate Governance

Corporate Governance

As one of the leading national firms representing shareholders in securities class action and shareholder derivative litigation, Chitwood Harley Harnes LLP believes that litigation can be used not only as a means to recover monetary losses, but also as a vehicle to implement corporate governance reform.

Corporate governance lawsuits are actions brought by persons or entities that currently hold shares of a company’s stock to bring about corporate change that will improve the company.  Corporate governance litigation includes a wide variety of shareholder actions, from derivative claims seeking to enforce a right of the corporation to class actions seeking to remedy unfair dilution of the interests of public shareholders.  These actions all have one thing in common:  they increase shareholder value in a particular company.

Chitwood attorneys have participated as lead attorneys in the establishment of a score of important precedents in corporate governance cases. 

A leading treatise in corporate law, The Business Judgment Rule, et al. (5th Ed.), p. 379, has deemed two of those decisions, Kahn v. Lynch Communications, 638 A.2d 1110 (Del. Super. Ct. 1994), and Kahn v. Tremont Corp., 694 A.2d 422 (Del. Super. Ct. 1997), to be the most significant Delaware corporate law decisions concerning the fiduciary duties of controlling shareholders in the last twenty years.