The board of directors for ABC Corporation took out a $30 million dollar loan to invest in capital expenses. After the company received the loan, the board voted to spend all the money on lobbying efforts in state and national legislatures. During that time, the company reported a $50 million dollar decrease in worth. Disgruntled, the company shareholders sue the board for the devaluation of the company and their stock.

1. Regarding the first scenario:
   • What type of lawsuit should the shareholders bring?
   • What defense(s) should the board raise?
   • Who will likely be successful in the lawsuit, and why?