LLC Derivative Lawsuits

Though the cases are not as nearly developed as with corporations, limited liability companies (LLCs) are subject to derivative lawsuits. A typical derivative lawsuit is one in which a member/owner of the company brings a claim on behalf of the LLC against a manager, director or third-party. Usually the manager/director is authorized to bring the suit, so the member has to take special steps to show that requests were made to the manager/director to take the requested action or that such requests would be futile. To that end, the LLC act requires that the lawsuit “shall set forth with particularity the effort of the plaintiff to secure initiation of the action by the persons who would otherwise have the authority to cause the [LLC] to sue in is own right.” Section 347.173, RSMo. Separately, the LLC act permits the Court to award a successful plaintiff in a LLC derivative action his or her reasonable attorney fees and expenses.
Contact with questions about LLCs, LLC lawsuits and/or LLC derivative actions.

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