When a public company's actions affect many innocent people due to their personal greed, what can be done to remedy their actions?

This is an actual situation that occurred with a public company in the United States in the late 1990s….one that I’ve debated with people for many years. Its interesting to hear people’s ideas of how things like this are remedied, if they even can be. Love to hear the Fluther communities philosophies…..

“How are things like this fixed: A majority shareholder and his company’s board of directors layoff employees 2 months before Christmas that save the company around $1.5 million, and allows the company’s earnings to meet analysts’ projections. A little while after the company has released its earnings and its stock is strong and healthy due to meeting analysts’ projections, the positions that were eliminated that saved $1.5 million are filled again with new employees, and the majority shareholder and a few board members cash out over $60 million and walk away from the company. How do you feel issues like this can be remedied? (i.e., government intervention? market self-governance? karma?)?”