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Stryker Corporation Message Board

Matt63334 1 post  |  Last Activity: Feb 12, 2015 11:25 AM Member since: Aug 28, 1998
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  • In a situation like this, the question is who would be paying the damages if the suit is successful? Unless the directors or officers will be paying themselves or from their own insurance and do not have a right of indemnification from the company, the company itself will pay, which means the owners will pay.

    I suppose the wealthy shareholders that join the suit will end up funding less of the settlement when netted against any amounts received so between the shareholders this tends to allow the rich shareholders to suck blood from the less sophisticated shareholders that do not join the suit, but as a whole the shareholders as a class own a smaller company after the payment while only a portion of the payment reaches the shareholders that sued after the attorneys take their 33% contigency fee. Economically, the suit is a great scam in which one group of shareholders is suing another and in the end the suing shareholders sacrifice 33% of the value of the settlement to the attorneys in excahnge for getting a disproportionate amount of company assets that are by definition taken from all shareholders. The disappearing assets go to the attorneys.

    So, if, like me, you are not joining a suit, not only are those who are suing affecting the price of the stock, thereby shrinking the pie, but they are also taking part of your piece of that shringking pie for themselves. And my friends wonder why I am reluctant to tell people I am a lawyer!

SYK
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