A derivative lawsuit is filed by the shareholders on behalf of the corporation to remedy a wrong to the corporation.

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A derivative lawsuit is a lawsuit brought by a shareholder on behalf of the corporation to remedy a wrong done to the corporation, such as a breach of fiduciary duty by corporate officers or directors. The recovery in a derivative lawsuit goes to the corporation, rather than to the shareholders who brought the suit.

A Derivative Lawsuit Is Filed by the Shareholders on Behalf