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How can a class action by shareholders against the company they hold shares in /ever/ be a sensible thing for anyone other than lawyers? You own a proportion o
by harry8 8y ago
How can a class action by shareholders against the company they hold shares in /ever/ be a sensible thing for anyone other than lawyers?
You own a proportion of the assets you are suing for. $100 worth of company assets you own becomes say $20, with $80 being returned to you as your class action win. But of course the lawyer fees come out so you get $30 of your $80 so $100 of assets just became $50. Your win is a huge loss.
Is this class action by investors against the company just the lawyers capturing the system to their profit? Can there ever be anything like justice at all with this?
- repsilat 8y agoYou should be able to sue if you sold after the story broke. In that case you were wronged, but you are not shooting yourself in the foot by suing. Also: if the net worth of the company is less than its book value (possible), suing could increase your net worth.
- harry8 8y agoSo the person buying from you factors in the discount for losing the law suit and you are not ahead. The lawyers are, investors are worse off. I can't imagine many companies with a market cap less than disposal value of their assets. That's free money for any corporate raider it other acquirer. You do find money putting in the street but rarely and it doesn't stay there long. These class actions are just an abject disaster for everyone. Except the lawyers, who make bank while enhancing their reputations in all the wrong ways. And it costs tax dollars to run the courts for them to vampire like so. Insane. The money is gone, giving the remnants to lawyers won't bring any back. The correct remedy is jail for those who committed fraud acting as a deterrent j in the future.