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Defense Lawyers Give Their Post Mortem On JDS Uniphase Securities Class Action

Publication Date: 
February 08, 2008
Class Action Litigation Report
Joyce E. Cutler

BNA's Class Action Litigation Report reported on the "JDS Uniphase post mordem" hosted by the Rock Center for Corporate Governance. Professor Joseph A. Grundfest, who moderated a panel discussion that included lead defense counsel and the case's lead expert witness, was quoted:

The case is one of the rare securities class actions to reach trial, said Joseph Grundfest, Stanford Law professor and former Securities and Exchange Commission commissioner. "This is the unicorn. And not only is it a unicorn, it's one big unicorn," he said.

Plaintiffs estimated damages of $18 billion to $20 billion. "There obviously was some number at which the defendants would settle. That's their bid. There was another number that was demanded by the plaintiffs, that's their ask. The bid never hit the ask and the spread was probably very, very large, signaling there was no way to cross the chasm," Grundfest said.

"One of the questions that I have is, did the plaintiffs actually wind up believing their own propaganda?" he said.