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Fiduciary duty is fun to define because I’d bet it could be argued both ways here. If you want to consider Costco’s low margins as a core factor as to why consu
by redserk 6mo ago
Fiduciary duty is fun to define because I’d bet it could be argued both ways here. If you want to consider Costco’s low margins as a core factor as to why consumers choose them, opting for a decision that makes their customer base run off wouldn’t be very responsible to shareholders.
Consider the Target backlash last year. They’re since down 14% vs Walmart (up 30-ish%). Regardless of anyone’s political beliefs, I don’t think a 14% loss seemingly caused by behavior that a segment of customers considered hostile is thinking of the shareholders.
- petcat 6mo agoRight but they're not being sued by their shareholders, they're being sued by a handful of customers and "on Behalf of All Others Similarly Situated".
- JumpCrisscross 6mo ago> they're being sued by a handful of customers To be fair, they’re being sued by customers who were marketed memberships.
- zugi 6mo agoTo be really fair, they're being sued by lawyers hoping to take 50% of the proceeds, or 50% of some settlement that they get by shaking down Costco via threats to its reputation.
- JumpCrisscross 6mo ago> To be really fair, they're being sued by lawyers Is that the case history? Or bullshit assumption? Because this looks plaintiff sponsored.
- zugi 6mo agoAdding "bullshit" to a sentence does nothing to hide this kind of ambulence-chasing vulturism and exploitation - in fact it rather highlights it. I mean, one of the legal firms behind this is Milberg PLLC, https://en.wikipedia.org/wiki/Milberg https://en.wikipedia.org/wiki/Milberg, who has been charged with illegally paying plaintiffs to sue in order to enrich themselves.