$1 Billion Suit Means Little For Investors

from the should-it? dept

An opinion piece in the San Jose Mercury News is talking about how the settlement of the shareholder class action suits against all the various tech companies that IPO’d during the boom is likely to play out – and how much money those people will get. In most cases, it will be pennies on the dollar of what they lost. I’m still wondering whether or not they deserve anything at all. No one forced them to buy shares in overhyped, propped up companies. People who didn’t do their own due diligence and realize that it was all a big bubble don’t deserve to get their money back. What about those investors who were smart enough not to invest in overhyped companies with no promise? They don’t get any sort of reward for being smart.

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Comments on “$1 Billion Suit Means Little For Investors”

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Anonymous Coward says:

No Subject Given

I agree, Mike. However, these suits are NOT about the “shareholders” – it’s about lawyers lining their pockets. All class action lawsuits that are settled these days end up with each person in the “class” getting some small pittance (like a coupon) with the lawyers raking in millions.

Mike (profile) says:

Re: No Subject Given

Good point. Always knew I should have gone to law school… 🙂

Of course, the article also points out how many class action lawsuits work, including the fact that the lawyers get to spend plenty of money (all taken out of the settlement, of course) to advertise the results of the class action settlement.

I think this explains the proponderance of “class action settlement” ads that have been showing up on Techirt via Google ads. The lawyers buy these ads, and don’t care how much they cost, since they just take it out of their “fees” from the settlement.

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