#MeToo continues: why sexual harassment is a growing litigation risk
US investors are using federal securities law to launch claims over sexual harassment policy compliance. Boards should take this seriously.
We all know that the federal securities laws prohibit insider trading, "pumping and dumping", Ponzi schemes and market manipulation. But public shareholders and their lawyers have been working hard to expand this ignoble list. Capitalising on the #MeToo movement, motivated investors have been bringing compliance-related, securities fraud cases against unsuspecting corporations and their officers and directors. The stakes are high.
The plaintiffs in these under-the-radar litigations are not victims of sexual harassment or employment discrimination but corporate shareholders. These litigants contend that certain public companies’ written c
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
Related Stories
-
How should a board manage a maverick CEO?
Elon Musk is in further trouble with US regulators over a tweet. His behaviour raises big questions for chairs elsewhere forced to manage mercurial chief executives.
-
Investment Association calls for better climate risk reporting
It's the latest warning that investors want to see companies explain the impact climate change will have on their business operations and future prospects.
-
Roadmap to mandatory TCFD reporting ‘should focus minds’
Some premium listed companies will see compulsory climate reporting as soon as next year. And experts warn that much work remains to be done.
