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Securities Class Actions An Effective Way To Spur Governance Reforms, Experts Say Shareholder Suits

Publication Date: 
October 26, 2011
Source: 
Corporate Accountability Report (BNA)
Author: 
Che Odom

Professor Joseph Grundfest is quoted in the below Corporate Accountability Report by Che Odom on how "2011 could be the quietest litigation year since Congress passed the Private Securities Litigation Reform Act of 1995."

Though federal securities class action activity may be down this year compared to 2010, experts say institutional investors continue to view litigation as an effective means of bringing about changes in corporate governance.

Institutional Shareholder Services Inc. held an informational program Oct. 25, Governance Reforms Through Securities Class Actions, to explain the benefits and risks of securities class action lawsuits and the unique role that institutional investors can serve.

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Professor Joseph Grundfest, director of the Stanford Law School Securities Class Action Clearinghouse, said in the August report that “if one focuses exclusively on traditional fraud claims against U.S.-based companies, then 2011 may well be on track to be the quietest litigation year since Congress passed the Private Securities Litigation Reform Act of 1995 (PSLRA).”