Wisconsin turns loss into win; Investors gain by new model for class action crafted from Anicom case.(Other Views)

Pensions & Investments, May, 2004 by Johnson, Keith L.

Byline: Keith L. Johnson and Ken McNeil Investors are being ill-served by the legal system when it comes to addressing corporate fraud. Hundreds of class-action lawsuits are filed each year, but recoveries come slow and are a fraction of what was lost. Many investors are not even claiming their share of the lawsuit recoveries.

A record $5 billion was committed last year by defendants to payment of securities class-action settlements, up from $3.1 billion in 2002, according to Securities Class Action Services. Yet, at least two-thirds of institutional investors fail to even file claims, despite the fiduciary duty to do so, according to a recent Washington University Law Quarterly study. Securities Class Action Services estimates $2 billion was left on the...

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