FULL DISCLOSURE: Dodd-Frank Clawback Provision Potentially a "Major New Weapon"

September 14, 2010

by Eric Krell

The clawback provision for compensation recoupment included in the Dodd-Frank Wall Street Reform and Consumer Protection Act potentially qualifies as a "major new weapon" for shareholder plaintiffs and shareholder activists, according to law firm Latham & Watkins.

Clawback Context | Source: The Big Fat Finance Blog.

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It expects to see

It expects to see shareholder plans bring derivative suits “challenging the implementation of the company’s clawback policy and attempting to exercise the company’s rights to repayment. - Dr Marlan Ahlgrimm