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Shareholder sues Bayer over Monsanto acquisition

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A person buys stock because he or she believes that particular company will continue to profit in the future.  Normally, in good faith, the company is looking to make as much money as possible because their jobs are on the line if financial goals are not met.  Nevertheless, there are some consumer protection if a company tanks on purpose because fraud occurs when a company will prop up their profits to entice people to buy shares and then liquidates immediately after enough stocks are sold.

However, there are some grey areas in which shareholders cannot protect themselves.  In these unique cases, litigation is the way to go in order to reach a verdict.  Yesterday, a shareholder of Bayer stock filed a lawsuit against the company for gross negligence in acquiring Monsanto in 2018.  The claim is that Bayer executives were looking to bring disaster to the corporation by buying Monsanto without knowing that thousands of lawsuits would be filed against Monsanto in 2019.

Before you buy stock, make sure that you do research about the company or you could end up like this shareholder with a stock that has lost $20 per share in less than two years.  However, do not buy Bayer stock because the acquisition of Monsanto will eventually go down as the worst business transaction since the Native Americans sold Manhattan to the Dutch for $24.

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Written by ahol888

Coolest dwarf in the world. Expert on the topic of mediocrity.

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