A few items from around the web.
(1) The Financial Times had an article yesterday on the status of “scheme liability” in the U.S. courts. The article notes that the issue is currently before the Fifth Circuit in the Enron case and that the U.S. Supreme Court is considering whether to hear an appeal from the Ninth Circuit’s decision in the Homestore case.
(2) Lies, Damn Lies, & Forward-Looking Statements (back from hiatus) has a post on the settlement of the opt-out case brought by the California State Teachers’ Retirement System (CalSTRS) against Qwest Communications. CalSTRS claims to have recovered “approximately 30 times what it would have received had it participated in the federal class action as a class member.”
(3) Best in Class has a post on “passive voice” press releases from plaintiffs’ firms seeking clients.
(4) The Wall Street Journal had a column (subscrip. req’d) in Friday’s edition discussing the effect of options backdating disclosures on a company’s stock price (quick answer: generally not much of an effect). Of course, no significant stock price drop usually means no securities class action.
The 10b-5 Daily 