To get reliable legal advice, you should be asking a lawyer, not random people on HN.
That's terrible advice.
What would you suggest OP do instead of asking HN?
e.g.
"Could you sue on behalf of the shareholders of your CEO's embezzlement and win? Maybe? Should you? I don't know, I'm not your attorney, and I haven't studied any of your claims."
That's about as worthless as it gets.
Although, we are trying to understand if this could be considered as fraud so we can remove them with a legally solid reason, and confiscate their shares.