A Legal Newsline report in Forbes details the unusual alliance between class action trial lawyers and free market state treasurers.
The State Financial Officers Foundation, which calls itself “the nation’s largest and leading organization for free market-focused state treasurers,” sent a letter to the U.S. Securities and Exchange Commission (SEC) opposing a rule that would have allowed companies and investors to arbitrate disputes rather than litigate them through class actions. The letter comes after a Republican SEC commissioner floated the arbitration idea in 2017.
A report released earlier this year by the U.S. Chamber Institute for Legal Reform found that securities class action litigation has increased since the last federal reform action in the 1990s. The paper also “explains how the plaintiffs’ bar has taken control of litigation out of the hands of the actual plaintiffs.”