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How so? They only have themselves to blame. Unless you’re saying they’re going to send death threats?
by endisneigh 3y ago
How so? They only have themselves to blame. Unless you’re saying they’re going to send death threats?
- dgacmu 3y agoDefending yourself against several lawsuits can be extremely expensive, not to mention time consuming. While the board members are almost certainly covered by the company's D&O insurance (unless they're not, which would be a ridiculous clown show), there's still a lot of arguing that can happen about which parts are covered by the insurance and which parts may trigger personal liability. The point is not that these board members would lose the lawsuits - ianal and nobody knows the details well enough - it's that sufficient lawsuits can eat you before you win or lose them if you're not rich. AND subject you to discovery and a huge waste of time. "I will bury you in legal fees unless you resign" is not a very nice or principled negotiating tactic, but it's a potential one, and it should be weighing pretty heavily on the mind of any board members who don't have a spare million or two to toss in a fire.
- endisneigh 3y agoA lawsuit on what grounds? Firing a ceo is not illegal.