Teekay suit likely to be outlier, not trendsetter

摘要

Is a recent shareholder lawsuit targeting Teekay Corp a sign of things to come as depressed stock pricing fuels investor backlash? At least one prominent attorney believes the answer is 'No'. "I think there will actually be fewer [securities litigations]," Seward & Kissel partner Bruce Paulsen told IHS Fairplay. "The plaintiffs' lawyers care about potential recoveries and with share prices going from low to lower, the damages numbers may not be big enough to tempt them. Also, the potential recoveries may be limited by failures, bankruptcies, and lack of cash."