Tag: Lead Plaintiff

Pension Funds Lead in Corporate Cases, Enhancing Big Fee Demands

“Pension funds are more likely to be clients because they are easily identifiable, sophisticated investors that the plaintiff’s bar can quickly contact and explain the theory of the case,” said Paul Weitzel, a University of Nebraska law professor. *** Institutional investors as plaintiffs “suggested that the cases were driven, rather than by plaintiffs’ lawyers seeking a fee, instead by institutions…

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Credit Suisse Case Spotlights Who Can Lead Securities Lawsuits

A federal magistrate judge’s rejection of a lead plaintiff bid in a proposed securities class action against Credit Suisse Group AG highlights how courts decide if an investor is right for the role. The judge found Credit Suisse investor Yasni Jimenez wouldn’t adequately represent a proposed class alleging the bank made false and misleading statements about its practice of lending…

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This is weird: Securities class action defendant wants to block lead counsel appointment

Defendants aren’t supposed to pick a dog in the lead counsel fight. Sure, if there are parallel cases in different jurisdictions they can manipulate the outcome by negotiating a settlement with one set of plaintiffs’ lawyers instead of another, effectively preempting the lead counsel selection process. But I can’t remember ever seeing a defendant in a federal securities class action…

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Lead Plaintiffs and Their Lawyers: Mission Accomplished, or More to Be Done? by Stephen J. Choi, Adam C. Pritchard :: SSRN

This chapter, written for the Research Handbook on Shareholder Litigation, surveys empirical work studying the lead plaintiff provision of the Private Securities Litigation Reform Act (PSLRA). That work finds that the lead plaintiff provision has encouraged institutional investors to participate in securities class actions, and that those institutional investors have negotiated lower attorneys’ fees. Those benefits from the lead plaintiff…

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