A couple of columns on securities litigation topics:
(1) The New York Law Journal (Aug. 25 edition) has a column on the Eleventh Circuit’s recent decision regarding proportionate liability and control person claims.
Quote of note: “The LaPerriere decision provides the basis for an even further shift in favor of control person defendants. Under LaPerriere, control person defendants inevitably will avoid joint and several liability for the entirety of plaintiffs’ damages and may even be held responsible for a lesser amount of damages than that attributed by the fact finder to the persons they control.”
(2) Legal Times (Aug. 27 edition) has a column on the litigation surrounding auction rate securities. The authors conclude that the pending securities class actions may be rendered moot by regulatory settlements designed to fully compensate injured investors.
Quote of note: “The most interesting legal aspect of these settlements and buyback programs may be their debilitating impact on the numerous class actions and other private suits filed since the market seized up. Most problematic for any private suit, including putative class actions, is the inability to prove damages — a central element of any private action. If all auction dealers ultimately agree to implement their own buyback programs for customers, then all those potential plaintiffs will have no remaining damages.”