New Jersey § 14a:3-6

§ 14a:3-6.

On termination of a derivative proceeding or a shareholder class action the court

may: (1) order the corporation to pay the plaintiff's expenses incurred in the proceeding

if it finds that the proceeding has resulted in a substantial benefit to the corporation; (2) order the plaintiff to pay any defendant's expenses incurred in defending the

proceeding if it finds that the proceeding was commenced or maintained without the

exercise of reasonable diligence by the plaintiff or without reasonable cause or for

an improper purpose; or (3) order a party to pay an opposing party's expenses incurred because of the filing

of a pleading, motion or other paper, if it finds that the pleading, motion or other

paper was not well grounded in fact, after reasonable inquiry, or warranted by existing

law or a good faith argument for the extension, modification or reversal of existing

law and was interposed for an improper purpose, such as to harass or cause unnecessary

delay or needlessly increase the cost of litigation.