Nothing Is Securities Fraud?
Shareholder arbitration, a stablecoin fat finger, hedge fund pay and Intrade efficiency.
Two popular themes around here are:
These themes are related. “Everything is securities fraud” means mainly that, if a bad thing happens at a public company, some enterprising shareholder class action lawyers will sue it for securities fraud. “You didn’t tell us that the bad thing would happen, so we bought stock, then it happened, and our stock went down, and we were defrauded,” etc. We talk about these lawsuits all the time because there is something funny in the accumulation of them. The other day I mentioned a lawsuit against a public rocket company whose rocket exploded, “thereby injuring investors.” Not because the investors were hit by rocket debris. Because the stock went down.