Is it too easy for shareholders to sue companies? The U.S. Supreme Court is scheduled to hear arguments today and tomorrow asking for new limits on how far investors can take class-action lawsuits against public companies.
Lynn Turner, former chief SEC accountant and managing director of research at Glass, and Alan Pritchard, former SEC lawyer and securities law professor at the University of Michigan appeared on "Morning Call" today to debate the issue.
The case to be argued today involves an antitrust suit against fifteen Wall Street firms accused of collusion on new stock offerings. Tomorrow’s case is a securities fraud suit against Tellabs, a maker of telecommunications equipment, alleging the CEO misled shareholders about the company’s future.
Turner says it has become too hard for shareholders to bring lawsuits against companies.