Shareholders of a corporation brought a class action against the president,alleging that they missed out on dividends and an increase in the value of their shares because the president misappropriated the corporation's funds.This suit was successful and the president paid $10 million in damages.This money will go to:
A)the shareholders who brought the class action.
B)the treasury of the corporation.
C)the state,as a fine.
D)the federal government,as a fine.

Question

Quizplus · Accepted Answer

Any recovery from a successful class action suit by shareholders is prorated to all members of the class.In this case,it implies that the $10 million in damages paid by the corporation's president will be distributed among the shareholders of the corporation.

Shareholders of a Corporation Brought a Class Action Against the President,alleging