The St. Louis Post-Dispatch ran a feature article in Saturday’s edition that was sharply critical of securities class actions. Among other things, the author discusses the low rates of recovery for investors.
Quote of note: “Many institutional investors get involved in lawsuits as a last resort, but, some say, the suits are not by any means a panacea for wronged shareholders. ‘If we are a long-term holder of a security, our real interest is in having the company turn around,’ said Gary Findlay, executive director of the Missouri State Employees’ Retirement System. ‘If we sue the company, aren’t we suing ourselves? They spend our money to defend themselves against us and buy insurance. … Whatever comes out of that, comes out of my pocket.'”