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Unformatted text preview: fallout. The board didn’t act in favor of all stakeholders, but in favor of the most influential ones. I think that if the owners had acted appropriately, they would have covered up these “mistakes” better. The other owners, the smaller shareholders, acted appropriately by suing the crap out of the Rigas family. The Government got involved by running an audit and by using their SEC rights to do an investigation on Adelphia. This kept everything legal. Other than that, the government helped sue the owners that had made the mistakes. The Sarbannes-Oxley act would have helped in that the Rigas that was on the audit committee couldn’t have helped the family get away with what it did. It keeps the whole “conflict of interest” thing to a minimum. Basically, if this would have been in place, it wouldn’t have happened....
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- Spring '08
- audit committee, rigas family, voting power