Abstract
The past 25 years brought great upheaval in shareholder litigation. The Private Securities Litigation Reform Act of 1995 (“PSLRA”) upended securities class actions. As a result of this legislation, institutional investors now play a far more prominent role in these cases (Choi, et al. 2005), but also face procedural hurdles nearly unprecedented in our legal system (Erickson 2016). More recently, the number of merger class actions skyrocketed, as shareholders began to challenge nearly every significant merger or acquisition, often in multiple jurisdictions across the country (Sinha 2016). To curb these suits, courts announced increased scrutiny of settlements and invited companies to limit these suits in their governing documents. These legal innovations are fundamentally changing the way that shareholders litigate these types of claims. ...
Document Type
Book Chapter
Publication Date
2018
ISBN
9781786435347
Recommended Citation
Jessica M. Erickson, The (Un)Changing Derivative Suit, in Research Handbook on Representative Shareholder Litigation (Jessica M. Erickson et al., eds., Edward Elgar Publishing, 2018).
