You do realize that when the shareholders sue a company for financial malfeasance (instead of suing the board and managers as individuals), they are basically suing themselves?
They are suing the board for dereliction in their fiduciary responsibility to represent shareholder interests, not their own. But I didn’t advocate for lawsuits. Unfortunately when the executives are totally independent of the shareholders and said executives start making terrible decisions then I think the shareholders only real option is to pull their money out and move on. Because there are no checks and balances if the board are all just puppets of the CEO and by the time any legal remedies are found the company will be dead or devoured.