Professionals Targeted in Shareholder Suits

It is generally well settled that shareholders may sue a corporation’s board of directors. When business transactions go awry or in the wake of questionable (or certainly fraudulent) business practices shareholders have standing to sue directors and officers under theories of breach of fiduciary duty and the like. But shareholders may have other targets as well. Many corporations rely upon third-party advisors before making corporate decisions. May a shareholder target financial advisors, accountants, attorneys and other third-party professionals in this scenario? A recent decision suggests that shareholders armed with an “aiding and abetting” theory may sue the professional along with the board of directors.
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