Companies across the country have been riddled with lawsuits for alleged securities fraud since the late 1990s. According to one report, more than 3,050 securities litigation cases have been brought against companies. Many of these lawsuits come from shareholders themselves that are upset because of a decision that executives at the company have made.
Now, according to a report, pro-corporation forces are waging a behind-the-scenes battle to end securities related litigation from shareholders. They are trying to argue that these lawsuits typically result in many shareholders receiving money from a company that they own a part of, and are therefore mainly paying themselves.
The idea behind the group is to try to have key cases overturned by the Supreme Court. Many of these court cases involve different tests and levels of economic statistics that could be used by companies, as well as how shareholders perceive certain information provided by the company regarding company finances.
Securities litigation can be extremely complex. Many times large financial principles are used, and each company has possibly hundreds of different people making decisions that can affect share prices and the return that shareholders might see. All of these decisions are likely made with one common goal in mind, but sometimes shareholders don't make money, and companies can be accused of fraud.
An experienced securities litigation attorney can help companies and shareholders understand their rights during cases involving alleged securities fraud. They can work to seek a reasonable solution while keeping all the details of complex legal issues straight.
Source: The New York Times, "A Push to End Securities Fraud Lawsuits Gains Momentum," Steven M. Davidoff, Oct. 15, 2013