Investors hold a special place in American hearts. Even those who invest in law-breaking firms are treated as victims rather than actors who may bear some responsibility for the harm those firms cause. Is it time to change this perspective? And if so, what are the risks and benefits inherent in such a seachange? Today, we are joined by Associate Professor of Law at Emory School of Law, Andrew Jennings, whose latest paper, ‘Criminal Investors’, serves as the basis for our discussion. Hear Andrew unpack his latest article on the culpability of investors in law-breaking firms, including why investors are perceived as blameless in America, how investing can enable crime, why prosecutors are apprehensive about charging investors, and the ins and outs of shareholder liability. We also examine the potential social costs of prosecuting investors for corporate misconduct, the role of knowledge and intent, how technology could change the landscape, and Andrew’s final thoughts on how society can ensure that corporate criminal behavior can be policed while protecting the vast majority of non-culpable investors.

Key Points From This Episode:

• Introduction of Associate Professor of Law, Andrew Jennings and a description of his Business Scholarship Podcast.
• ‘Criminal Investors’, a paper reassessing the culpability of investors in law-breaking firms.
• The prevailing assumptions we make about investors that prompted a series of articles by Andrew.
• How investing can enable crime, and why investors are rarely prosecuted in America.
• Diving deeper into shareholder liability while comparing direct and vicarious liability.
• Exploring investor liability and where knowledge and intent fit in.
• The potential costs of prosecuting investors for corporate misconduct.
• How technology and AI could influence the future of investor prosecutions.
• Andrew’s take on whether investors are more or less likely to be prosecuted in the future.

Links Mentioned in Today’s Episode:

Andrew Jennings

Andrew Jennings | Emory University School of Law

Andrew Jennings on LinkedIn

Andrew Jennings on YouTube | Business Scholarship Podcast

Andrew Jennings on X

Andrew Jennings on Bluesky

‘Criminal Investors by Andrew Jennings’

Fordham University School of Law Corporate Law Center