3 ms·
How do such lawsuits work? If they win, where does the money come from? They are the shareholders; it's their own money. I could see suing the executives, thou
by jfengel 2y ago
How do such lawsuits work? If they win, where does the money come from? They are the shareholders; it's their own money.
I could see suing the executives, though they don't have 32 billion.
Maybe there's some insurance company that takes the hit?
I've been involved in similar class actions and they always seemed to be the idea of the lawyers, who just needed to convince one shareholder to sue himself out of spite.
- dredmorbius 2y agoFrom TFA: The proposed class action suit lists Intel, CEO Pat Gelsinger, and CFO David Zinsner as the respondents. The actual settlement is all but certainly covered under D&O liability coverage. That's directors and officers insurance, a major line of corporate insurance products. <https://en.wikipedia.org/wiki/Directors_and_officers_liability_insurance https://en.wikipedia.org/wiki/Directors_and_officers_liabili...> <https://www.thehartford.com/management-liability-insurance/d-o-liability-insurance/explained https://www.thehartford.com/management-liability-insurance/d...> From the latter link: Directors and officers are sued for a variety of reasons related to their company roles, including: Breach of fiduciary duty resulting in financial losses or bankruptcy, Misrepresentation of company assets, Misuse of company funds, Fraud, Failure to comply with workplace laws, Theft of intellectual property and poaching of competitor’s customers, [and] Lack of corporate governance. Several of those conditions are directly applicable to this lawsuit.