A few interesting items from around the web.
(1) It is not often that outside directors are forced to contribute to the settlement of a securities class action out of their own pockets. In the Peregrine Systems case in the S.D. of California, however, six outside directors have settled for a total of $55.95 million. AmLaw Litigation Daily has a post on the settlement, but notes that the exact amount being paid by the directors themselves (and whether it is some kind of record) is disputed.
(2) Fox Business reports that the Securities and Exchange Commission has provided a legislative "wishlist" to Congress. Although most of the requests would only have an indirect impact on private securities litigation, the SEC does address the hot button issue of extraterritorial jurisdiction. As stated in the list (No. 15): "Clarify US extraterritorial jurisdiction under antifraud provisions of securities laws, overwriting disparate judicial tests by combining both (effects and conduct). US courts would have jurisdiction over 'conduct occurring outside the United States that has a foreseeable substantial effect within the United States.'"
(3) The Deseret News reports that U.S. Senator Bob Bennett (R - Utah) has sent a letter to the Securities and Exchange Commission asking the agency to widen its "pay to play" investigation to "include law firms and attorneys who end up selected to file securities class-action lawsuits for pension plans that could bring them millions of dollars in fees." Thanks to Securities Docket for the link.Posted by Lyle Roberts at July 16, 2009 9:30 PM | TrackBack