I think Matt Levine coined this phrase: "everything is securities fraud." Activist investors will sue for anything alleging that executives broke securities la

I think Matt Levine coined this phrase: "everything is securities fraud." Activist investors will sue for anything alleging that executives broke securities law by doing anything that harmed their portfolio. It doesn't mean they win the cases, or that anyone is guilty. There's also something worth noting that even if there isn't a legal obligation for executives to act on their shareholders interests, they have a really strong incentive when their compensation is mostly stock grants and the shareholders can fire them.