MARKET SCAMS

[Capt_Nemo]

Who is Driving Securities Class Actions?
Whoa, who slipped the truth serum to Judge Jordan of the federal court in Delaware? As discussed in detail in this post on the PSLRA Nugget blog, the Court used the opportunity of a motion for appointment of lead plaintiff and approval of counsel in the Molson Coors case (or as the Court put it, a decision on "which of the plaintiffs' law firms will win the money race") to air its views on whether the Congressional goal of making class action securities cases more client-driven and less lawyer-driven has been realized.

See if you can read the tea leaves and divine the Court's opinion via this snippet:





The market's response to the news from Molson Coors was not kind. Shares of the company immediately fell by nearly 20%, the fifth-largest loss that day among New York Stock Exchange listed companies. (Id. at 62.)




Price shifts of the magnitude experienced by Molson Coors stock on April 28 do not go unnoticed by securities litigators. In short order, suit was filed....





Check out footnote 4 of the opinion (2005 WL 3271488) for more of the court's "honest[y] about what appears to be at stake."


UPDATE: A copy of the Court's opinion is available here, courtesy of Adam T. Savett. Thanks, Adam!

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