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Big investors seek a #MeToo clawback

Some venture capitalists are looking for a way to fine companies hit by harassment scandals

As the #MeToo movement continues to sweep through US corporations, some venture capitalists are pushing a proposal that would make it easier for big investors to extract fines from companies embroiled in such scandals.

Arguing that sexual misconduct cases pose a financial threat to businesses and their shareholders, the group is working to craft a standard clawback clause that could be added to agreements between investors and private equity managers, and between managers and the firms they invest in.

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