When the Dow Drops, Expect a Flood of Fraud Claims

by Kurt Schulzke on January 22, 2008

Today, the DOW Jones Industrial Average temporarily fell 465 points, roughly 3.8% of Monday’s close.  When the market falls like this,  lots of shares will have sold at a loss, locking in investor “damages” equal to the original purchase price minus the sale price.  Company executives, boards and auditors should brace for impact as the plaintiff’s bar goes trolling through financial statements, notes and press releases for evidence of fraud.