Statement of Lisa A. Rickard, President of the US Chamber Institute for Legal Reform, on the U.S. House of Representatives Financial Services Committee hearing on H.R. 5491, the “Securities Litigation Attorney Accountability and Transparency Act”:
“Chairman Baker’s proposal to reform the securities litigation process is a needed first step in repairing a system that has become broken down due to trial lawyer fraud and abuse largely at the expense of American investors.
“Research shows that the mere filing of a class action suit shrinks a company.s stock value by an average of 3.5 percent — hurting stockholders while stunting job growth and economic expansion. Meanwhile, individual investors themselves rarely recover full damages.
“In light of the recent class action securities litigation abuses and pending indictments, the time is right for Congress to conduct a thorough and broad investigation of securities-related class action fraud and consider meaningful reforms to repair this broken system.”
ILR’s mission is to make America’s legal system simpler, fairer, and faster for everyone. It seeks to promote civil justice reform through legislative, political, judicial, and educational activities at the national, state, and local levels.