WASHINGTON, D.C.— The following is a statement by Lisa A. Rickard, president of the U.S. Chamber Institute for Legal Reform (ILR), on the Halliburton v. Erica P. John Fund U.S. Supreme Court case in response to Wednesday’s filing of the respondent’s brief:
“The value of securities class action lawsuits is often questionable since the costs they impose on investors are much greater than any benefit they provide. Instead, that burden falls on the companies’ current shareholders and insurance paid for by those shareholders. Studies also show that such lawsuits do not deter fraud.
“The securities class action system is broken and the beneficiaries are lawyers—those who file the lawsuits and those who are paid to defend them.”
ILR seeks to promote civil justice reform through legislative, political, judicial, and educational activities at the national, state, and local levels.
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 industry associations.
