Shareholders have begun using laws governing corporate disclosures to hold companies to account over “material impact” of sexual harassment.
Harvey Weinstein leaves court during his trial in January 2020. Image: Lev Radin/Shutterstock
The #MeToo movement, trigged by revelations in 2017 about film director Harvey Weinstein, has quietly opened a second front in the campaign to end sexual harassment in the workplace.
While much attention has been focused on the behaviour of individual executives and corporate culture, shareholders have begun using laws governing corporate disclosures to hold companies to account.
Three recent cases in US courts have seen shareholders use securities law to claim companies made “false and misleading” statements in statutory filings about “codes of conduct” and other policies to convince investors that all was well.
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda