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When a leading freight company merged with a competitor, all looked rosy for stockholders. But when the company's stock fell to half its earlier value, based on problems allegedly inherited from its former competitor, stockholders sued for losses of more than $15 per share, as well as punitive damages. While the group won at the appellate level, the California Supreme Court appeared reluctant to expose companies to common law liability for third-party stockholders' decisions to hold on to their shares.
January 08, 2003 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
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