Prospects Uncertain For Investor Lawsuits Alleging Securities Fraud
The Associated Press references Stanford's Securities Class Action Clearinghouse in a story about the course of class action lawsuits alleging securities fraud:
A study by Stanford Law School found several companies - including WorldCom Inc., i2 Technologies Inc., Gemstar-TV Guide International Inc., Centennial Technologies Inc. and Homestore Inc. - paying nine to 10 times more to investors in private class-action lawsuits than to federal regulators. From WorldCom alone investors won $6.2 billion while the Securities and Exchange Commission collected $750 million.
Since 2000, investors filing federal class-action lawsuits alleging securities fraud have won $42 billion in damages from the business community, according to research by the Stanford Law School Securities Class Action Clearinghouse. The Stanford study also found that in the past two years the number of class-action lawsuits filed by investors has declined.