The National Law Journal has an article on the widening exposure of law firms in securities class actions. Although the Supreme Court’s prohibition on aiding and abetting liability in private securities fraud actions has generally shielded law firms, in some cases courts have found that the law firms acted as primary violators. Plaintiffs have added fuel to that fire by arguing that even if a law firm did not make (or substantially participate in) a misrepresentation to the market, it can be held liable as a primary participant in a fraudulent scheme.
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Shareholder suits target corporate lawyers
Peter Geier at NLJ discusses the “creative” ways plaintiff’s counsel are finding to go after the outside lawyers who advised a target company. Lyle Roberts discusses (“Attorneys Beware”)….