Corporate – Plummeting Stock Value – No Direct Shareholder ClaimsEstate of Browne v. Thompson The plaintiff-shareholders allege that defendants hid Wachovia’s true financial status, thereby leading plaintiffs to retain Wachovia stock until it plummeted in value. Where plaintiffs alleged no facts indicating that defendants owed plaintiffs a special duty, and where plaintiffs’ loss is the same injury suffered by the corporation itself, plaintiffs are not entitled to bring a direct (as opposed to a derivative) shareholder action against defendants.
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Published: April 3, 2012
Time posted: 4:42 pm
Tags: Corporate, No Direct Shareholder Claims, Plummeting Stock Value