June 01, 2007

Daniel J. Popeo of the Washington Legal Foundation has more to say on Bill Lerach and the Stoneridge case:

The U.S. Supreme Court recently agreed to review a novel interpretation of the federal securities laws. The case won’t be argued until this fall, but its outcome, and possibly the fate of America’s dynamic securities market, may be determined in the next several weeks.

During that time, the Securities and Exchange Commission (SEC) must decide whether to take a formal position in this case, Stoneridge v. Scientific-Atlanta. The SEC’s options: Support the securities laws as Congress intended, or endorse class action lawyers’ efforts to drastically expand their litigation targets and reap millions more in fees.

The battle for the SEC’s support has been fierce, with the notorious Bill Lerach leading the public relations offensive for the plaintiffs’ bar. Lerach has enlisted powerful politicians and activists in the effort, and he even penned a rare op-ed in an influential legal publication arguing that the stakes for securities fraud suits have never been higher.

Mr. Lerach is right, the stakes are high, but investors and America’s position in the global economy would not come out the winners if his view prevails.

Read the whole thing in today's Examiner, here.