Litigation attorneys Bruce Vanyo, Richard Zelichov and Christina Costley authored an article in The D&O Diary regarding a new trend of shareholder lawsuits in the wake of the Dodd-Frank Wall Street Reform and Consumer Protection Act's provisions on say-on-pay. The article explains how shareholders initially relied on negative say-on-pay votes to bring stockholder derivative lawsuits alleging breach of fiduciary duty but that these lawsuits were generally unsuccessful. A new trend has emerged of the plaintiff’s bar suing companies before the say-on-pay vote to enjoin the vote based on alleged misleading disclosures. (“‘Say on Pay’ and Executive Compensation Litigation: Plaintiffs’ New Racket,” October 31, 2012)
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