I’m sure all of us are happy to hear this news whether we are involved in the insurance or securities industry or not. The many prosecutions and settlements initiated by Elliot Spitzer have actually made some impact on the overall securities litigation scene.
The study said in 2006 there were only 110 securities class action suits compared to the 178 suits in 2005 alone. The study attributed that astonishing decline to “a strengthened federal enforcement environment and a strong stock market”. Historically the 2006 figure was the lowest since 1995, a year when the pivotal Federal Private Securities Litigation Reform Act passed.
The aforementioned “strengthened federal enforcement environment” was elaborated to be “pressure that the Securities & Exchange Commission and the Department of Justice now bring to bear on corporations to conduct internal investigations that implicate the individual executives responsible for the fraud.” Instead of an amorphous entity where potential pilferers have free reign more companies are striking to the source of the problem, greedy individuals that should be punished for their misdeeds.
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Posted by: Finance Guide 101 | January 17, 2007 6:48 AM | Permalink to Comment