In the latest issue of InSights (here), I take a look at the Tellabs case now pending before the U.S. Supreme Court and discuss why the outcome of the case will matter. As noted at greater length in the article, the case “has the potential to significantly alter the securities litigation landscape for
Dura’s Impact on Lead Plaintiff Selection
In the securities fraud lawsuit arising out of the Comverse Technology options backdating scandal, a federal district judge, applying principles derived from the Supreme Court’s 2005 decision in the Dura case, has overturned a magistrate judge’s lead plaintiff ruling, resulting in the Lerach Coughlin firm’s removal lead counsel in the case. (The background on the
Institutional Investors, Lead Plaintiffs, and Opt-Outs
A frequently repeated – but demonstrably false – statement about securities class action lawsuits is that, while public pension funds have served as lead plaintiffs in securities fraud lawsuits, private institutional investors, such as banks, mutual funds, and insurance companies, have not. However, as Adam Savett points out (here) on the Securities Litigation
More Massive Opt-Out Settlements
In recent posts (most recently here and here), I have commented on the worrying trend toward institutional investor opt-out cases and the massive settlements that have followed. In a February 28, 2007 press release (here), the University of California announced the latest of institutional investor opt-out settlement, a $246 settlement on the
Apple, The Big Apple, and “Pay to Play” Plaintiffs’ Lawyers
In a series of recent editorials, the New York Sun has raised some interesting and troubling questions about a New York City’s pension fund’s involvement as lead plaintff in the Apple Computer options backdating securities litigation.
The first Sun editorial on the topic, entitled "New York Versus Apple "appeared on January 25, 2007 (here
SEC Urges “Exceedingly High” Pleading Standard?
As discussed in February 13, 2007 New York Times article entitled “SEC Seeks to Curtail Investor Suits” (here), the SEC and the DOJ have jointly filed an amicus brief in the Tellabs case pending on writ of certiorari before the United States Supreme Court, in which brief the agencies urge the Court
Do We Need Private Securities Lawsuits?
In a widely-circulated and much discussed February 7, 2007 Wall Street Journal op-ed column entitled "The Class Action Market" (here, subscription required), former SEC Commissioner and Stanford Law Professor Joseph Grundfest (pictured above) takes a look at the declining number of securities fraud lawsuits in 2006 (see prior D & O Diary posts
Opt-Outs, Claims Severity and D & O Insurance Limits
In the latest of the securities class action opt out settlements, California’s teacher pension fund reached a $46.5 million settlement in its separate case against Qwest Communications, its accountants and investment banks, and certain former directors and officers. According to news reports (here), the parties resolved the pension fund’s case, which was
Securities Fraud Lawsuit Severity Soars, Even While Frequency Declines
While the number of securities fraud lawsuits declined in 2006 (see here and here), the average size of securities fraud lawsuit settlements increased by 37% relative to 2005, even excluding the impact of the Enron settlement, according to a January 2, 2006 study by National Economic Research Associates (NERA). The study, entitled “Recent Trends
Stanford Study Details 2006 Securities Fraud Lawsuit Decline
On January 2, 2007, the Stanford Law School Securities Class Action Clearinghouse , in conjunction with Cornerstone Research, released its year-end study entitled “Securities Class Action Case Filings 2006: A Year in Review” (here), as well as a press release (here) detailing the report’s filings. As The D & O