Re:Tesla, Musk must face shareholder lawsuit over going-priv...
by thaumasiotes on Wednesday April 15, 2020 @08:58PM
(#22885021)
> because the shareholder is seeking redress from a specific harm to them caused by the company
Specifically, the harm they're seeking redress from is a drop in the value of their stock.
And the redress they are seeking is also a drop in the value of their stock.
This is the conceptual problem. Shareholders have not suffered any harm that can conceivably be redressed by a shareholder lawsuit. The only possible effect of the lawsuit is to hurt the shareholders even more than they were hurt before.
Re:Tesla, Musk must face shareholder lawsuit over going-priv...
by gamblor956 on Wednesday April 15, 2020 @09:47PM
(#22885266)
Shareholder lawsuits only hurt shareholders at the time of the lawsuit.
They can be filed by shareholders who were harmed by prior corporate account. Not sure for this concept is so hard for people to understand.
TLDR we're taking about different groups of shareholders.
Imagine that I accidentally hammer my thumb and sue my hammer for the injury. I find it guilty and have it destroyed. How did my situation improve? All that happened is that I'm down a hammer.
Your hammer is literally just an extension of you so you are just suing yourself. A company is not just an extension of its shareholders. In fact, the whole point of the corporate form is that the business is separate from its shareholders legally, financially, and for all purposes (except for some reason First Amendment rights).