Prof. Ronald Colombo Comments on Credit Downgrades of 15 Banks by Moody’s

Ronald J. Colombo, Associate Dean for Academic Affairs and Professor of Law

The downgrades could make the banks targets for shareholder class actions or derivative suits against their directors, particularly if banks’ stocks have suffered recently, according to Hofstra University law professor Ronald Colombo.

“Whenever a company’s stock declines significantly, that’s a trigger for a class action or derivatives action brought by shareholders,” Colombo said Friday. “I think you’re going to have securities lawyers trolling around, looking for anything said by the banks that can be connected to this downgrade and use that to cook up a lawsuit.”

Read the full article on law360.com.