Henry brought a lawsuit against NewAge Inc. ,claiming that the CEO of NewAge had misappropriated funds last year,as a result of which NewAge ended the year in the red.However,Henry was not a shareholder of NewAge last year and his only motive for buying NewAge shares was to bring this lawsuit in order to gain out-of-court settlements for himself.This kind of lawsuit is known as a:

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Strike suits are lawsuits brought to gain out-of-court settlements for the complaining shareholders personally or to earn large attorney's fees,rather than to obtain a recovery for the corporation.Since Henry was not a shareholder of NewAge last year (when the claimed wrongdoing occurred)and his only motive of buying NewAge shares was to bring this lawsuit in order to gain out-of-court settlements for himself,the lawsuit he brought against NewAge represents a strike suit.

Henry Brought a Lawsuit Against NewAge Inc