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> If the company goes bankrupt from the lawsuit, then there's no money left for anyone. Bankruptcy means there isn't enough money for everyone, not that there'
by dehrmann 4y ago
> If the company goes bankrupt from the lawsuit, then there's no money left for anyone.
Bankruptcy means there isn't enough money for everyone, not that there's no money.
- echelon 4y agoIt goes to the debt holders first. Shareholders get wiped out. Would plaintiffs in a lawsuit come before debt holders if their claim is based on shares they couldn't exercise?
- dehrmann 4y agoAssuming they won the lawsuit, the plaintiffs are creditors. IANAL, but the fact that the lawsuit was over the liquidity of shares shouldn't be relevant if damages were awarded. https://www.investopedia.com/ask/answers/09/corporate-liquidation-unpaid-taxes-wages.asp https://www.investopedia.com/ask/answers/09/corporate-liquid... > Should the debtor have a pending lawsuit against them, the victim is often positioned as a preferential creditor pending the outcoming of court proceedings.