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Why would shareholders sue the company they own shares in if their goal was to get a payout? Surely when the company reports such a payout the share value will
by voxic11 5y ago
Why would shareholders sue the company they own shares in if their goal was to get a payout? Surely when the company reports such a payout the share value will reflect that. It seems like this case should be taken at face value, the shareholders want the company to change its behavior so that their shares can be worth more in the future.
- nybble41 5y agoIf all the shareholders were to sue and divide the payout according to the number of shares they hold then yes, that would be a losing proposition. If only some of the shareholders sue, however, the payout from the suit might exceed the drop in the value of their own shares, at the expense of other shareholders who are not parties to the suit.