Complex Derivative Action

This complex derivative action was initiated on behalf of the heirs of a co-founder of a Cyprus-based pharmaceutical company. Upon the death of their father, the clients inherited shares and a board seat in the company. They later discovered that their uncle (the other co-founder) had diverted company resources and corporate opportunities to competing ventures, including establishing parallel commercial operations.

After the company’s board refused to take action, our firm filed a derivative claim seeking restitution of misappropriated assets and damages for fiduciary breaches. We led corporate investigations, reviewed board minutes, financial records, and correspondence to substantiate the breaches, and engaged with regulatory bodies on corporate governance concerns. The matter remains ongoing and is expected to establish important precedent on the exercise of shareholder derivative rights in Cyprus.