Lead Plaintiffs and Their Lawyers: Mission Accomplished, or More to Be Done?
Document Type
Article
Publication Date
2017
Abstract
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 provision are undercut, however, by political contributions made by plaintiffs' lawyers. We suggest additional reforms to promote transparency and competition among lawyers for lead plaintiffs. We also suggest reforms to the lead plaintiff provision intended to enhance the screening effect of the PSLRA.
Recommended Citation
Choi, Stephen J. and Pritchard, Adam C., "Lead Plaintiffs and Their Lawyers: Mission Accomplished, or More to Be Done?" (2017). Public Law & Legal Theory Working Papers. 300.
https://repository.law.umich.edu/pub_law_archive/300