While Business Corporations Law § 626(e) provides that a successful plaintiff in a shareholders' derivative action may recoup legal expenses and attorneys' fees from the proceeds of a judgment, compromise, or settlement in favor of the corporation, it does not authorize the imposition of such expenses on the losing party. Here, the cause of action for attorneys' fees is dismissed.
Schmidt v. Board of Directors of Duane Owners, Inc., NY Slip Op 05778 (1st Dep't November 19, 2024)
