Lack of timely resolution, legal costs may hold back class action suits

A combination of legal costs, which would be significant for minority shareholders, and the lack of timely resolution may stymie the use of class action suits for some time to come.

Shareholders are likely to continue voting with their feet when faced with issues in their companies, according to experts. News of shareholders of a large conglomerate, reportedly planning class action suit against an auditor whose resignation allegedly led to a decline in share price, may well mark more of an exception than the rule.

A class action suit allows depositors or shareholders to collectively seek compensation following wrongdoing by