>Quite often a senior leadership issue because backing stuff up results in $$$ spent, which makes shareholders unhappy.
This is true. The latter half of your comment is not. At best they have a duty to shareholders. But your assertion would mean every time a company posted a loss and the price went down the execs would be in legal trouble, which is nonsense.
Shareholder nuisance lawsuits can happen basically any time the stock goes down... or doesn't go up enough, and often companies will settle instead of the expensive fighting...