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Securities Class Actions Score Big Payday for Lawyers



Forbes recounts recent securities class action settlements and the attorneys' fees generated by those settlements. It estimates that Bill Lerach stands to generate almost $300 million in fees for a settlement that is pending in Enron litigation.

The article also cites research suggesting that the Private Securities Litigation Reform Act, sponsored by SEC-chair-nominee Christopher Cox, may not have been effective in tempering the number of suits brought against large companies. Securities class action settlements in 2004 amounted to $5.5 billion, breaking the previous record set in 2000.

Settlements so far in 2005 suggest that this year might break the record again.

Bruce Carton from ISS has helpful blog coverage on recent settlement activity.

 

 


Rafael Mangual
Project Manager,
Legal Policy
rmangual@manhattan-institute.org

Katherine Lazarski
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.