Why Do Institutional Shareholders Sue You?

Class action litigation brought by institutional shareholders is on the rise. According to this panel, the litigation against corporations (and often individual board members) is less frequent since institutional shareholders have come to the forefront of these cases. However, they are also more severe than in the past, and more credible. The litigation is usually preceded by lengthy investigation and analysis. Moreover, the remedy sought by institutional shareholders is by no means limited to monetary damages; significantly, the cases seek reform of corporate governance as well.