October 30, 2006

Trick Or Treat

Is it the end of private securities litigation? Not yet, but one could hardly tell given some of the fierce reactions to the possibility that The Committee on Capital Markets Regulation, a private group of business leaders and academic experts, may recommend that the SEC limit the ability of private plaintiffs to bring actions pursuant to Rule 10b-5.

The New York Times had a feature article on the "Paulson Committee" (as it is colloquially known because U.S. Treasury Secretary Henry Paulson provided a favorable quote for its initial press release) this past weekend. Although the main focus of the Paulson Committee appears to be examining the effects of the Sarbanes-Oxley Act, an initial recommendation to the Committee from Professor John Coffee that the SEC consider dis-implying a private right of action under Rule 10b-5 (in some or all cases) is garnering the most attention.

Reaction can be found in a New York Times column and posts in Point of Law, Ideoblog, and Securities Litigation Watch. The 10b-5 Daily offered its views on the problem of SEC/private litigation overlap last year.

Posted by Lyle Roberts at October 30, 2006 10:14 PM | TrackBack
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