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Corporate – Plummeting Stock Value – No Direct Shareholder Claims (access required)

Estate 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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