Legal Question in Product Liability in Illinois
A fortune 500 CFO admits to having deliberately treated $4 billion in operating expenses as assets, thereby allowing the corporation to show profits instead of losses, The auditor never detected this. The corps stock dropped 95% and bond covenants related to billions in debt are breached. At its peak price last year, the CFO sold stock acquired through stock options for $15 million, generating a $10 million gain.
What provision(s) of the securities law will probably be the basis for a class-action lawsuit by stockholders?
Asked on 3/30/11, 10:49 am
1 Answer from Attorneys
Bruce Burdick
Burdick Law Firm
Products Liability? Resubmit under the proper topic. This is a Securities Law question.
Answered on 4/02/11, 8:06 am
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