Re: Petition for Rulemaking Requiring Pre-Notification and Disclosure of Certain Communications by Trial Lawyers
- Case Date: 3/24/2003
- Project Name: Reining in the Plaintiffs' Bar
On March 24, 2003, WLF filed a petition with the Securities and Exchange Commission, urging the SEC to issue a rule requiring plaintiffs' lawyers to disclose their contacts with stock analysts about impending class action lawsuits against publicly traded companies. WLF argued that such disclosure is necessary to prevent manipulation of stock prices in connection with the filing of lawsuits. WLF argued that its proposal would discourage short selling of stock by those with inside knowledge of impending lawsuits and would also ensure that companies have an adequate opportunity to respond to adverse information being spread by plaintiffs' lawyers. WLF charged that lawyers often spread such information as a means of driving down stock prices, and thereby pressure companies into settling what are often insubstantial claims.
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3/24/2003: Download the Letter