U.S. companies adopt bylaws that could quash some investor lawsuits

Reuters – A handful of mostly tiny U.S. companies have become the first to adopt controversial bylaws that would shift legal fees to investors who sue and lose, which legal experts said could upend the economics of shareholder litigation.

The Delaware Supreme Court ruled in May that “loser pays,” or fee-shifting, bylaws were valid and could be used to deter lawsuits.

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