SEC Rule 201 restricts short selling activity if a stock declines at least 10% from the previous trading day’s close. Historical experience indicates that while the restriction is likely to apply to a relatively small percentage of all stocks on an average day, the restriction is likely to prove relevant in a large number of securities class actions.
Tesla Board compensation derivative suit: Implications of the Final Judgment
In the follow-up to a prior Insights, CRA’s Aaron Dolgoff, Zawadi Lemayian, and Rahul Chhabra, examine the Delaware Chancery Court’s Final Judgment that...