Shareholders have begun using laws governing corporate disclosures to hold companies to account over “material impact” of sexual harassment.
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. One shareholder claim was dismissed, another has proved partially successful, while a third—against Signet Jew