Publicly traded companies have a duty to their shareholders to provide transparency and make every attempt to create a reasonable rate of return.
When businesses struggle, that can create issues that put executives at odds with each other, the public, regulators and shareholders as they attempt to produce profits and maintain shareholder value.
That pressure to perform sometimes means that executives may not adhere to the law in an appropriate way, creating a potentially illegal situation that could result in shareholder litigation.
Shareholder litigation can take many forms:
For a company executive to be found guilty in a shareholder litigation case, plaintiffs must plead six elements to make their claim.
Raun Muntz O-Grady LLP serves clients in Los Angeles, Hollywood, West Los Angeles, Santa Monica, Beverly Hills, Anaheim, Orange County and communities throughout Southern California.