Outsiders often have and seek to trade on a firm's material, nonpublic information. For example, lawyers have traded on advance information about the filing of a lawsuit, a social activist has announced a plan to trade on advance information of a boycott, and a hedge fund operator has engaged in...

The purpose of this article is primarily to look into the early demonstration of the new statutory procedure relating to derivative claims under Part 11 of the Companies Act 2006 in two recent cases, and subsequently to assess the likely impact of these cases on the future development of the...

This paper analyzes lawsuits in which at least one side, plaintiff or defendant, is a corporation. In particular, we provide evidence on the relative frequency of the legal issues involved, the incidence of suits by whether the opponent is another firm, governmental entity, or non- corporate...

Companies are sometimes accused of misleading the market. The SEC can punish this with enforcement actions. Alternatively, shareholders can seek redress through a shareholder class action (SCA). While some literature has examined SEC actions, it has not examined SCAs, and has not examined...

IIt is often assumed that strong securities markets require good legal protection of minority shareholders. This implies both quot;goodquot; law -- principally corporate and securities law -- and enforcement, yet there has been little empirical analysis of enforcement. We study private...

The main thrust of this article is that courts and legislatures, particularly Congress and the federal courts, are biased in favor of management, and that their failure to hold management to account has emboldened management to engage in corrupt behavior, and has led to passivity and supineness...

Corporate law in advanced domestic legal systems on the one hand, and typical treaties for the protection of foreign investment on the other hand, treat claims for damages by company shareholders differently. Advanced domestic systems generally bar shareholders from claiming for reflective loss...

Advanced systems of domestic corporate law generally apply a “no reflective loss” principle to shareholder claims. Shareholder claims are permitted for direct injury to shareholder rights (such as voting rights). But shareholders generally cannot bring claims for reflective loss incurred as...

This paper examines the relationship between the quality of disclosure in companies' 10-K filings and the risk of securities class action litigation. I use a dataset containing 10-K documents filed electronically with the SEC in the period 1996-2005. Using two content analysis software programs...