Watchful Shareholders Sue Nordstrom for Family’s Frequent Flying
Today’s Seattle Times front page article reports on the case against Nordstrom that I blogged about a couple weeks ago. Big corporations have perpetuated the myth that shareholder lawsuits are simply to line the pockets of attorneys. Let me address that head on: Shareholders like Judith Burbrink (the Nordstrom shareholder-plaintiff in this case) are smart to look out for their own interests rather than cast a blind eye to the company’s financial reports. Because of cases like this, corporations that have a family legacy will hopefully think twice about allowing extravagant travel expenses for executives and their relatives.
There are many individual investors that simply trust that their interests as shareholders are well guarded. After all, only a few like Ms. Burbrink have the patience or time to sift through details about how a company’s fleet of planes is used. Does it make sense to side with the corporations or with the investor? Retail investors should thank her. Aren’t you glad for some checks-and-balances that Washington lawmakers put in place for the rare shareholder who cares enough?
Full disclosure: Consumer protection/class action attorney Brad J. Moore of Stritmatter Kessler Whelan is local counsel on this case.