The U.S. Chamber of Commerce today reacted to a decision by the U.S.
Supreme Court in Halliburton
Co. v. Erica P. John Fund, Inc. that takes a step toward scaling
back meritless securities class actions. The Chamber also urged Congress
to do more to protect shareholders in these abusive cases.
"The Court today took a small first step in a long journey toward
reducing the costs of securities class actions for investors. We are
disappointed, however, that the Court missed an important opportunity to
correct the mistake that Basic has turned out to be for
investors. Meritless securties class actions benefit only a few
plaintiffs' lawyers and ultimately cost investors billions," said Lisa
A. Rickard, president of the U.S. Chamber Institute for Legal Reform.
"Congress must now finish this important journey toward shareholder
justice by acting to cut back on litigation driven solely by a few
"While today's decision inches toward bringing securities law back in
line with the ordinary rules for proving fraud cases, much more can and
should be done," said Lily Claffee, general counsel of the U.S. Chamber
and executive vice president of the National Chamber Litigation Center.
ILR seeks to promote civil justice reform through legislative,
political, judicial, and educational activities at the national, state,
and local levels.
NCLC is the litigation arm of the U.S. Chamber of Commerce that
advocates fair treatment of business in the courts and before regulatory
The U.S. Chamber of Commerce is the world's largest business federation
representing the interests of more than 3 million businesses of all
sizes, sectors, and regions, as well as state and local chambers and
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