3 ms·
The difference with the proposed mechanism of action is that there would be no severance of liability at the time of equity sale. I.e. you couldn't sell off th
by ethbr1 2y ago
The difference with the proposed mechanism of action is that there would be no severance of liability at the time of equity sale.
I.e. you couldn't sell off the stock, make your huge return, and avoid the consequences
Subsequent litigation would claw back those same huge returns.
- chrisjj 2y agoAh, then yes, different. However this deterrent effect is unfortunately conditional on the full risk of the outcome being apparent in advance to investors and indeed investees. I fear that often it is not, as in this 3M case. This boils down to our drive for progress leading to employing new technology beyond our ability to evaluate its risk, as e.g. currently with "AI". Deterrence of that cannot be acheived at the corporate level. It is a societal problem.