Investor Litigation in the United States: Is It Working?

Jay W. Eisenhofer, a partner in the law firm Grant & Eisenhofer P.A., recently presented his paper Investor Litigation in the U.S.–The System is Working here at Harvard Law School. Co-authored by Gregg S. Levin, the paper is critical of efforts to “discredit” the “long-established mechanism” of investor class actions.

Investor Litigation in the U.S. discusses the reported decline in the international competitiveness of U.S. capital markets, considers recent evidence on the listing premium enjoyed by firms cross-listing in the U.S., confronts the so-called “circularity argument” often levelled at the securities litigation system, and canvasses corporate governance reforms said to have directly resulted from shareholder litigation. The paper concludes that the “current system of investor rights has resulted in lower costs of capital and higher valuations” and that no case can be made for radical litigation reform.

The full paper is available for download here.

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