It's The Litigation, Stupid
This opinion by John Coffee on Sarbanes-Oxley and investors' attitudes toward investments mentions Professor Joseph A. Grundfest.
Recent scholarship by Joseph Grundfest of Stanford and others suggests that the SEC now has the power to restrict such suits through new rules. In fact, Congress has already authorized such reforms by passing the National Securities Market Improvements Act of 1996, which gives the SEC broad authority to adopt rules making exemptions. NSMIA, as it is known, added Section 36 to the Securities Exchange Act of 1934 giving the SEC power to "conditionally or unconditionally exempt any person, security, or transaction, from any provision or provisions of this chapter or of any rule or regulation thereunder, to the extent that such exemption is necessary or appropriate in the public interest, and is consistent with the protection of investors."