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If there were a $17 billion judgement against a $17 billion company, it would not sell for $17 billion.

If there is a judgment against a company which that company cannot pay, that company enters bankruptcy.

What happens when a corporation enter bankruptcy is the assets of the corporation are assigned to a receiver. The receiver then disposes of those assets with the aim of raising as much money as possible to pay the creditors involved. In the case of a credit bureau, keeping the bureau functioning would arguably be the best way to earn money to pay the individuals who the corporation owes money to - both the people who the got the judgment (first priority), other creditors(second priority) and then the share-holder (third priority).

This situation means that corporation that produces toxic waste, dumps it in a river and goes bankrupt from a private suit against it could continue to produce toxic in order keep producing and making money, in order to pay that judgment (it would probably be argued that the toxic-waste leak was a one-time thing).

Part of the problem is a private lawsuit isn't a substitute for state regulation even if it's often presented as such. Part of the problem is the very worst that happen to the owners, the shareholder, is their shares become worthless so their incentive for stopping truly bad behavior by organizations is limited.

You might say this is fucked-up and I would agree with you. Don't confuse my comments with statements of support for how things. I simply want to thorough, accurate and complete summary of just what a messy we're in.




Bankruptcy is the strange other side of the US debt system. In this case, it would be an unfair get out of jail free card, a shirking of responsibility.




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