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Ganging Up On The Lawyers

Publication Date: 
July 11, 2007
Roy Harris 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.