Shot Across The Bow

The PSLRA states that securities class action plaintiffs, within 20 days of filing a complaint, “shall cause to be published, in a widely circulated national business-oriented publication or wire service, a notice advising members of the purported plaintiff class.” After the publication of this notice, it is not uncommon for other plaintiffs’ firms (who have not filed complaints) to publish similar notices in the hopes of attracting a client who can be put forward as a lead plaintiff candidate. The initial plaintiffs’ firms do not usually react to this practice in public, but that may be changing. In a recent case, the firms who filed the first complaint have issued a press release “cautioning investors” about these notices and stating that because they conducted an investigation prior to filing the complaint “they are in a superior position to answer questions about the claims alleged.” A link to the press release can be found here.

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Filed under Lead Plaintiff/Lead Counsel

One response to “Shot Across The Bow

  1. The Passive Voice Press Release

    The 10b-5 Daily has a great catch of this unusual press release from the law firm Murray, Frank