W&L Law’s Chatman Publishes Article in UC Irvine Law Review Professor Carliss Chatman published "Corporate Family Matters."
Washington and Lee law professor Carliss Chatman has published an article in the UC Irvine Law Review. The article, “Corporate Family Matters,” explores how companies that are smaller entities of much larger corporations can create legal silos that insulate them from accountability and create an environment where socially conscience investors may be supporting businesses practices that run counter to their principles.
“When individuals act in a way that defrauds the market or causes harm, criminal law, securities law, and even tort and contract law provide remedies. When companies manipulate the market across business sectors, the antitrust laws intervene. When an individual corporation manipulates the market or engages in fraud, shareholder derivative litigation in conjunction with securities regulation provide a remedy. What is missing is a solution for market manipulation using corporate groups and, in particular, the corporate family. A system is needed for acknowledging entities that work for a common good, as the current structure enables these entities to manipulate what is known to investors and consumers for purposes of altering stock price, either intentionally or incidentally.” Chatman writes.
The article is available online at the UC Irvine Law Review website.
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