Attorney Faisal Moghul, partner at the Virginia-based business litigation firm Fox & Moghul, co-publishes article titled "Direct vs Derivative Claims: Permitting Direct Shareholder Actions for Closely Held Corporations" with the American Law Institute's ("ALI"), The Practical Lawyer, in the August, 2022, edition.

The American Law Institute Continuing Legal Education ("ALI-CLE") is a premier national provider of quality CLE products to lawyers since 1947 that delivers an array of legal seminars featuring the country's leading law practitioners, law professors, government regulators, and industry experts (www.ali-cle.org). 

Fox & Moghul is a Fairfax, Virginia-based boutique law firm that focuses on complex business litigation disputes, including shareholder derivative litigation, disputes between and among LLC members and Limited or General partners.

Recently, Mr. Moghul also co-authored a publication with Lexis Nexis on "Choice of Ownership Structure of Real Property" (June 9, 2022), which compares and contrasts the various ownership structures for owning real estate, including LLC, C corporations, S corporations, Limited Partnerships and joint ventures.

Given the sheer number of small and medium sized business partnership disputes that Fox & Moghul handles, attorneys Faisal Moghul and Joseph Rugari decided to author this publication with the goal of providing clarity on the issue of recovery of damages in shareholder derivative litigation.

"My hope is that this article will help attorneys understand the differences between direct and derivative damages," said Faisal Moghul, managing partner at Fox & Moghul.

"This article provides critical guidance for entrepreneurs going through a 'business divorce,'" Moghul said. Among other things, this article analyses controlling Delaware case law, which sets the national standard in shareholder derivative litigation, followed by an examination of Virginia jurisprudence on this issue, and concludes with an argument in favor of permitting direct shareholder action in closely held business disputes. Faisal Moghul utilized his years of experience in this field to research and formulate this article with the help of Joseph Rugari, an associate in the firm's business law practice group.

For any inquiries regarding this matter, please contact our press secretary Jessica Huynh at info@moghullaw.com.