Private businesses are primarily setup to be of the benefit to shareholders. https://en.wikipedia.org/wiki/Dodge_v._Ford_Motor_Co https://en.wikipedia.org/wiki

Private businesses are primarily setup to be of the benefit to shareholders. https://en.wikipedia.org/wiki/Dodge_v._Ford_Motor_Co https://en.wikipedia.org/wiki/Dodge_v._Ford_Motor_Co. If management is making decisions to enrich themselves first before the shareholders then they could run afoul if regulators. Adam was likely not a target of this so long as valuation went up. Now that it’s fallen his shareholders are arguably potentially hurt by his actions and regulators can swoop in.