Regulatory Ferment Could Spur New Securities Litigation

Regulatory Ferment Could Spur New Securities Litigation

January 11, 2010. The recent drop in class-action securities litigation may start to reverse as early as this year, according to Morrison Cohen litigation partner Donald H. Chase, who was cited in an article published today in CFO Magazine. Mr. Chase said that the reversal would be spurred in part by legislation pending in Congress and new leadership at the Securities and Exchange Commission. He added that new SEC actions announced following the installation of Robert Khuzami as the SEC's new Director of Enforcement are likely to have a greater effect on possible new plaintiffs' lawsuits than will volatility in stock prices. He noted also that new legislation awaiting Senate action would increase the SEC's oversight and enforcement powers, thereby reinforcing the effect on new litigation.

The full article can be seen at
http://www.cfo.com/article.cfm/14466773/c_14467129?f=home_todayinfinance.html