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We all know that securities class action suits are highly predictable, high-dollar exposure for directors and officers of public companies.20%, the fraudster executives were forced to depart their companies.In multiple logistic regression, which included control variables, the difference was significant at a probability value of .003.The suits are styled as “derivative” because the shareholders aren’t bringing the suits directly.
Rather, the shareholder is bringing the suit the corporation that is being injured by the reported misconduct of the directors and officers.
In all of the derivative lawsuits fees were paid to the plaintiff attorneys.
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