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 of 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:

Question

Quizplus · Accepted Answer

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