Amidst the current clamor over the competitiveness of the U.S. financial markets, a recurring theme has been the burden on the financial markets of U.S. litigiousness. One variant of this theme that has gotten air time is the idea that private securities lawsuits should be eliminated. The most prominent proponent of this idea is Stanford
Court’s Friends Spar Over Tellabs
Led by Marc Dann, the recently elected Democratic Attorney General of Ohio, the attorneys general for 22 states, plus the attorneys general for Puerto Rico and American Samoa, have filed an amicus brief (here) in the Tellabs case pending before the U.S. Supreme Court. The states’ brief strongly disagrees with the
Why The Tellabs Case Will Matter
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