Media Coverage
Source: CFO
Media Coverage
03.13.13
In the last six months, the boards or officers of ten companies have been targeted by derivative shareholder lawsuits alleging that executives were awarded stock-based compensation in excess of the amounts specified in approved stock plans, and thus the companies filed false and misleading proxy statements.
With companies anxious for shareholder meetings to take place as planned, several of the recent suits have been settled, with the companies agreeing to either make supplemental disclosures, pay plaintiffs’ attorney fees, or both.
“Settling these cases only incentivizes plaintiffs to continue filing such suits,” said Ana Damonte, counsel in Pillsbury’s litigation practice in San Francisco. “Companies that settle could put targets on their backs. Maybe they’d get sued again next year.”