The Plight of the Individual Investor in Securities Class Actions
Forthcoming in Volume 106, Issue 1, of the Northwestern University Law Review
Individual investors victimized by securities fraud have no voice in directing class actions brought on their behalf once institutional investors obtain lead plaintiff appointments. The same holds for state-level transactional class actions claiming breaches of fiduciary duty by boards of directors in connection with mergers and acquisitions. In theory, the interests of institutional and individual investors align, nullifying the need for a separate voice for individuals; one rationale for the lead plaintiff modifications of the Private Securities Litigation Reform Act of 1995 was that individuals would benefit from the sophistication of institutional investor lead plaintiffs. But in practice, individual investors’ interests in these actions often differ from, and may directly conflict with, those of
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Suggested citation: Webber, David H., "The Plight of the Individual Investor in Securities Class Actions," forthcoming in Volume 106, Issue 1, of the Northwestern University Law Review.
David H. Webber Contact Information
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