Class Actions Help Big Fish, Not Little Guy: Report

Law360, New York (October 27, 2005, 12:00 AM EDT) -- It’s time to look at the unintended consequences of booming securities class action damages, the U.S. Chamber of Commerce research institute says in a report that claims the economy is suffering under the whip of over-eager plaintiff firms.

The report, which tracks litigation data collected over the past ten years, suggests big shareholders such as institutional investors are overcompensated as a result of securities fraud class actions.

The reason, according to the report, is the institutional investors’ ability to offset losses from stock that has been...
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