Reply to post: Common practice

Common practice

In recent years it has become common practice for stockholders to sue companies hoping to realize unearned profits under questionable claims. In most cases the plaintiffs do no prevail. In the U.S. local courts occasionally grant relief but this is often overturned on appeal. Unless a company does something really obvious to defraud stockholders these suits rarely succeed. Some view them as fishing expeditions. institutional investors are becoming known for these types of lawsuits when they bet heavily on a company and are wrong.