They're often foundering on the scienter issue, notes Andrew Longstreth at American Lawyer. But here comes a wave of class actions against mutual funds slammed in the market downturn:

Of course, as in any case, the plaintiffs aren't necessarily looking to prove their theories in court. They're looking to pressure defendants into settling. "If there are plaintiffs able to get past dismissal and into discovery ... the defense cost is in the many millions," Robert Skinner of Ropes & Gray told Investor News. "I think this is what [plaintiffs attorneys] are banking on. If they can put together a complaint that passes muster, they can impose costs and receive a quick settlement."