Wednesday, August 22, 2007

Two Activist Targets, Two Class Action Lawsuits which Followed

It might be pure coincidence but Motorola, like Yahoo! earlier this year, has become the target of a series of shareholder class-action lawsuits in the months after we launched our "Plan B" campaigns aimed at both.

With these actions, one law firm starts and others immediately seem to follow. The charges in both cases have been that management has known that company was heading for a fall last year and yet said things were ok to shareholders.

I haven't been part of either set of cases. These are headaches you don't need when you are trying to turn around a company. But there is a simple solution for this problem, if you're running a company: do everything in your power to be caught in such a position where you make yourself a target.

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