Ganging Up On The Lawyers
CFO.com quotes Professor Joseph A. Grundfest about the large drop in securities class action filings:
Stanford professor Joseph Grundfest, director of the Clearninghouse and co-director of the Rock Center on Corporate Governance, said of the latest results: "This is starting to look like a permanent shift, not a transitory phenomenon." He acknowledged two possible causes: less corporate fraud — the result of heavier government enforcement action — and a strong stock market. Traditionally, the research has found that increased filings correlate with stock-market volatility because of the sharp losses suffered by potential claimants.