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  • Add You - Class Action Lawsuit Filings on Decline

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    ughlin on the other hand has had much of their resources tied up with the Enron case that has turned into the largest settlement to date and the costs are still adding up. If it were the case that
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    Possible Reasons for the Decline of Filings

    1.The passage of Sarbanes-Oxley (SOX) in 2002 SOX has public companies on the forefront of documenting controls and establishing corporate governance. Some think that this oversight has limited fraud therefore there is less of a need for shareholder class actions. Although the research considers the differences across industries and court circuits there is not supporting evidence that proves a correlation of SOX regulation to the decrease in federal filings.

    2.Law firms that are the largest filers are currently tied up in legal battles Firms such as Milberg Weiss have been subject to high profile federal trials that have led to serious losses for their partnership. Lerach Coughlin on the other hand has had much of their resources tied up with the Enron case that has turned into the largest settlement to date and the costs are still adding up. If it were the case that f

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    nd establishing corporate governance. Some think that this oversight has limited fraud therefore there is less of a need for shareholder class actions. Although the research considers the differences across industries and court circuits there is not supporting evidence that proves a correlation of SOX regulation to the decrease in federal filings.

    2.Law firms that are the largest filers are currently tied up in legal battles Firms such as Milberg Weiss have been subject to high profile federal trials that have led to serious losses for their partnership. Lerach Coughlin on the other hand has had much of their resources tied up with the Enron case that has turned into the largest settlement to date and the costs are still adding up. If it were the case that

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    es across industries and court circuits there is not supporting evidence that proves a correlation of SOX regulation to the decrease in federal filings.

    2.Law firms that are the largest filers are currently tied up in legal battles Firms such as Milberg Weiss have been subject to high profile federal trials that have led to serious losses for their partnership. Lerach Coughlin on the other hand has had much of their resources tied up with the Enron case that has turned into the largest settlement to date and the costs are still adding up. If it were the case that

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    filers are currently tied up in legal battles Firms such as Milberg Weiss have been subject to high profile federal trials that have led to serious losses for their partnership. Lerach Coughlin on the other hand has had much of their resources tied up with the Enron case that has turned into the largest settlement to date and the costs are still adding up. If it were the case that
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    ughlin on the other hand has had much of their resources tied up with the Enron case that has turned into the largest settlement to date and the costs are still adding up. If it were the case that firms were having limited resource problems therefore unable to file lawsuits then the public could suspect a rise in litigation as these suits pan out. Although contrary to this argument, it would seem to be true that firms of this size would not have trouble mobilizing a large offensive for promising cases thus there must be a lack of eye-opening opportunities.

    3.Significant increases in dismissal rates of lawsuits Beginning since the 1995 passage of the Private Securities Litigation Reform Act (PSLRA) the number of dismissals of cases filed has nearly doubled. In recent years dismissals have been the result of 38.2% of cases filed. Although the rates vary by court and seem relatively high according to the research the numbers may be misleading because they

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