In the News Today - October 10, 2017

October 10, 2017

Are shareholders the real losers from class actions?: In last year’s Slater & Gordon shareholder litigation proceedings, the company’s stock price dropped from $0.38 per share to $0.08 per share. In this case, the Motley Fool Australia said the “shareholders almost wiped out the company they invested in themselves.” Using data from other cases, and ILR, the article said the only winners of shareholder class actions are “the lawyers and those funding the class action.” (Motley Fool Australia)

New Report Shows Class Actions Hurt Consumers. But We Already Knew That.: In a blog post, ILR said the Office of the Comptroller of the Currency’s new report showing the cost of credit will rise as a result of the Consumer Financial Protection Bureau’s anti-arbitration rule proves something we already knew: class action litigation is expensive and only benefits lawyers. (Institute for Legal Reform)