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I'm not taking a position on whether it's 'just', I am simply pointing out that it primarily benefits the lawyers, and may benefit a few former shareholders. I
by nickff 7y ago
I'm not taking a position on whether it's 'just', I am simply pointing out that it primarily benefits the lawyers, and may benefit a few former shareholders.
I believe that class-action suits are supposed to benefit the class, both in the judgement/settlement and in changing long-term incentives. Shareholder lawsuits appear to do neither.
- projektfu 7y agoFair enough but screwing speculators in favor of die hard fans is not enough reason to hold off.
- nickff 7y agoIf this were a class-action lawsuit by people who were shorting Tesla stock, or owned some option on it, I would agree that it would be serve the purposes of class-action lawsuits (aside from lawyer-enrichment). But it isn't.
- projektfu 7y agoUnfortunately for your position, it’s considered to harm all investors when a key executive mouths off like this.
- nickff 7y agoI definitely agree that key executives mouthing off does harm the shareholders; the problem is that these shareholder class-actions against companies do not provide a real remedy to the harmed shareholders. I also agree that courts are allowing these lawsuits to proceed despite hearing objections like mine.