When Mismanagement Harms Share Value ...
A company's managers and directors have a responsibility to shareholders. As the company's owners, shareholders are entitled to any information that materially affects their investments. The company owes shareholders effective management and honest reporting.
ClassAction.com: Justice for Shareholders
When a company fails to meet its obligations to shareholders, the shareholders, as a class, can bring a lawsuit against the company.
- Corporate mismanagement: When executives and directors in the company take actions that are against the interests of the corporation, shareholders are right to be concerned. Such actions might include giving preference to some shareholders but not all.
- Theft of corporate opportunities: Taking the company's capabilities and handing them off to another entity can deprive the company of profitable opportunities. In some cases, managers have handed off operations to their own outside interests.
- Bad conduct: When a company engages in wrongful conduct — illegally dumping toxic chemicals, for example — that harms the company and decreases the value of investments. Any time a company's management and board knowingly approve or condone illegal activity, that is cause for a shareholder class action.
Shareholders cannot and should not accept bad management that adversely affects their — the shareholders' — best interests. Contact ClassAction.com to share your experiences.
