The media, SEC and public have increased their focus recently on trading by company executives through so-called Rule 10b5-1 plans, which continues to be a problem for public companies, despite a downtick in insider trading cases filed by the SEC last year.  The interest has been generated, in part, by an academic paper, which spurred the SEC and Congress to reconsider the rules around trading plans.

Morris Kandinov LLP has filed a derivative action on behalf of Granite Construction Inc. following the revelation of over $338 million in project cost overruns that were concealed from investors in multiple major construction contracts between 2017 and 2019.

We believe that the deterrent effects of stockholder litigation—and the billions of dollars recovered for millions of investors over the preceding decades—are largely attributable to a small group of individual and institutional investors who were willing to assert their legal rights to remedy corporate misconduct.

Recent guidance from the Mutual Fund Directors Forum on the treatment of board notes and minutes deserves a closer look.