Nonderivative suits

Term · Insurance and risk management · MLC-T-INS-002330

Legal actions brought directly by shareholders against a corporation or its directors and officers for harm suffered personally by the shareholders. Unlike derivative lawsuits, where the harm is to the corporation, nonderivative suits allege direct injury to the shareholders themselves, such as a decrease in stock value due to misrepresentation. These claims are often covered under the entity securities coverage (Side C) of a directors and officers (D&O) liability insurance policy.

Table 1. Record
Identifier	MLC-T-INS-002330
Field	Insurance and risk management
Subject	Management Liability

Record as JSON

{
  "id": "MLC-T-INS-002330",
  "term": "Nonderivative suits",
  "field": "Insurance and risk management",
  "definition": "Legal actions brought directly by shareholders against a corporation or its directors and officers for harm suffered personally by the shareholders. Unlike derivative lawsuits, where the harm is to the corporation, nonderivative suits allege direct injury to the shareholders themselves, such as a decrease in stock value due to misrepresentation. These claims are often covered under the entity securities coverage (Side C) of a directors and officers (D&O) liability insurance policy.",
  "subject": "Management Liability",
  "url": "https://mlchart.com/terminology/insurance/nonderivative-suits/"
}

Record 2,303 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.