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A comment on Nikola admits prototype was rolling downhill in promotional video. Parent comment

Re:Nikola admits prototype was rolling downhill in promotion... by roywiggins on Monday September 14, 2020 @02:50PM (#24473667)
Everything everywhere is securities fraud.

> contributing to global warming is securities fraud, and sexual harassment by executives is securities fraud, and customer data breaches are securities fraud, and mistreating killer whales is securities fraud, and whatever else you’ve got. Securities fraud is a universal regulatory regime; anything bad that is done by or happens to a public company is also securities fraud, and it is often easier to punish the bad thing as securities fraud than it is to regulate it directly.

https://www.bloomberg.com/opinion/articles/2019-06-26/everyt...

The problem is, who was defrauded? The investors, I guess, but if they sue then they can only collect money from the company that they own anyway. It's not obvious that's a money-gaining proposition.

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Re:Nikola admits prototype was rolling downhill in promotion... by andrewmutz on Monday September 14, 2020 @02:57PM (#24473763)
The investors could bring a derivative suit against the officers of the corporation. They wouldnt be collecting from the corporation, but from the officers of the corporation (https://en.wikipedia.org/wiki/Derivative_suit).

Presumably it would not be feasible to collect large sums from the officers, but they frequently do have D&O insurance policies that could kick in (https://en.wikipedia.org/wiki/Directors_and_officers_liabili...)

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Re:Nikola admits prototype was rolling downhill in promotion... by xkjkls on Monday September 14, 2020 @02:55PM (#24473740)
Not a money-gaining proposition, but that's why some CEOs should go to jail. We need to create an environment where fraud like this isn't profitable or sustainable.
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