Bar Raised for Suits by Investors
Professor Joseph Grundfest was quoted in a Los Angeles Times article about the Supreme Court ruling that "that investors had to show a likelihood of wrongdoing in the early stages of a case before it could proceed to trial":
Securities class-action lawsuits have been declining significantly. Some experts attribute the drop to reforms that companies undertook because of tough laws passed in the wake of the Enron and WorldCom debacles.
"The price of committing fraud has gone up, so the appetite for fraud in the executive suite has gone down," Stanford law professor Joseph A. Grundfest said.