4 ms·

In general damages are proportional to the harm you've suffered. If you only own a tiny amount of the company then you still spend a lot on a lawsuit but only

by jefftk 7y ago

In general damages are proportional to the harm you've suffered. If you only own a tiny amount of the company then you still spend a lot on a lawsuit but only suffered very low levels of economic harm. If this is what you want, though, you could just buy a share of each public company. (An index fund wouldn't work, I don't think, you actually need to own the stock.) (not a lawyer)

pbhjpbhj 7y ago
AIUI most countries, but not USA, award costs as the default position? If that's true then in such countries you may only win an award of a few Euros but the cost to the losing party could be millions (your and their legal fees). If the company cave and accept liability, or whatever, then they're probably going to have to pay out to all shareholders (or customers); which might be even more cost. So, even a small ownership can be leveraged. If my understanding is correct then the unique USA system flips things putting the corporations in the power seat as legal costs for a case are usually much less of a proportion of their cash reserves/profits/available credit. Not awarding costs removes the multiplier making litigation too costly for all but the very richest in society.
twic 7y ago
In that case, how about a derivative that is a bit like a credit default swap, but it's a sort of legal compliance swap? If a company follows the law, the issuer pays you a modest coupon, but if the company breaks the law, you have to pay the issuer a large indemnity. It would be a bit like a pandemic bond: https://www.iii.org/insuranceindustryblog/pandemic-catastrophe-bonds/ https://www.iii.org/insuranceindustryblog/pandemic-catastrop... You might even find ready counterparties amongst firms that do business with the company in question, or law firms who take them on on a retainer basis. I unironically quite like this idea. Now, who do i know at an investment bank?
bryanrasmussen 7y ago
in some places and situations the loser pays the cost of the other part's attorneys.

by jefftk 7y ago

pbhjpbhj 7y ago

AIUI most countries, but not USA, award costs as the default position? If that's true then in such countries you may only win an award of a few Euros but the cost to the losing party could be millions (your and their legal fees). If the company cave and accept liability, or whatever, then they're probably going to have to pay out to all shareholders (or customers); which might be even more cost. So, even a small ownership can be leveraged. If my understanding is correct then the unique USA system flips things putting the corporations in the power seat as legal costs for a case are usually much less of a proportion of their cash reserves/profits/available credit. Not awarding costs removes the multiplier making litigation too costly for all but the very richest in society.

twic 7y ago

In that case, how about a derivative that is a bit like a credit default swap, but it's a sort of legal compliance swap? If a company follows the law, the issuer pays you a modest coupon, but if the company breaks the law, you have to pay the issuer a large indemnity. It would be a bit like a pandemic bond: https://www.iii.org/insuranceindustryblog/pandemic-catastrophe-bonds/ https://www.iii.org/insuranceindustryblog/pandemic-catastrop... You might even find ready counterparties amongst firms that do business with the company in question, or law firms who take them on on a retainer basis. I unironically quite like this idea. Now, who do i know at an investment bank?

bryanrasmussen 7y ago

in some places and situations the loser pays the cost of the other part's attorneys.