Shareholder Fraud

Shareholder fraud accusations surface when a corporation’s employees are believed to have misrepresented or withheld information with the intent to deceive a company’s shareholders (either to retain them or attract new ones). Shareholder fraud allegations generally arise out of the prosecuting agent’s belief that the organization incorrectly reported its costs, expenses, and quarterly profits, or that one of the following occurred in excess in the company: corporate waste, mismanagement, or corruption that diminished shareholder equity.