When does a shareholder class settlement settle? The high court is to decide whether a pact approved by a Delaware judge precludes related federal litigation
Article Abstract:
The US Supreme Court heard arguments Nov 27, 1995, on whether settlement of a class action by shareholders in state court can legally bar a later, federal class action. The 9th Circuit held that it cannot in this case, Matsushita Electric Industrial Co v Epstein, settled in DE. The shareholders argue that Sec 27 of the Securities Exchange Act of 1934 gives federal courts exclusive jurisdiction and thus bars class counsel from releasing federal claims in state-court settlements. Business lawyers say that may end such settlements.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1995
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Class action war heats up; 1995 reform act hikes Milberg Weiss' share of plaintiffs' securities suits
Article Abstract:
The Private Securities Litigation Reform Act of 1995 has increased securities fraud litigation and led to more work for specialist Milberg Weiss Bershad Hynes and Lerach. Plaintiffs' attorneys are also filing securities class actions in state court, where the restrictions of the new law do not apply. Finding this an attempt to avoid federal law, businesses are lobbying Congress for an amendment to the act pre-empting states' laws and thus blocking suits from being based on them.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1997
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Broker in court over secret report; recommendations of consultant - hired as part of SEC pact - are at issue
Article Abstract:
Penny-stock broker Stratton Oakmont Inc and the SEC continue to battle in court over the confidentiality of a report on the firm's business practices made as part of a settlement of securities fraud charges. The report is said to include a large number of complaints that Stratton brokers made unauthorized trades. Parties suing Stratton for improper sales practices would like to obtain the report in discovery.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
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