Two years after the U.S. Supreme Court vastly expanded the scope of permissible corporate political spending with Citizens United v. Federal Election Commission, evidence is mounting that this new freedom may come with perils for public companies and their shareholders.
Prior to the landmark ruling, Section 203 of the Bipartisan Campaign Reform Act of 2002 forbade corporations from funding “electioneering communications”—that is, broadcast advertisements for specific candidates—within 30 days of a primary or 60 days of a general election.
