I get what you are saying, but you are the one that chooses which index fund to use.
Sure, one could limit this to voting rights, but most big Index funds have voting right on many companies because they own collectively many shares.
One could also limit this to "outside 401k / pension programs", etc.
But if you have a say in what a company does (or can sue them for damages as an investor), you also have a responsibility for what that company is doing.
I don't know what the right solution to this problem is, but in many companies, the shareholders tell the CEO what to do and have no liability. This encourages them to optimize for maximum profits, making smaller "Company sized" damages part of the operating expenses, but without regard for huge damages like in this case.
Which isn't fair either, since it means the damages to these people won't be payed by those who profited from them.
Sure, one could limit this to voting rights, but most big Index funds have voting right on many companies because they own collectively many shares.
One could also limit this to "outside 401k / pension programs", etc.
But if you have a say in what a company does (or can sue them for damages as an investor), you also have a responsibility for what that company is doing.
I don't know what the right solution to this problem is, but in many companies, the shareholders tell the CEO what to do and have no liability. This encourages them to optimize for maximum profits, making smaller "Company sized" damages part of the operating expenses, but without regard for huge damages like in this case.
Which isn't fair either, since it means the damages to these people won't be payed by those who profited from them.