Network Firm News
Internet Changing the Way Plaintiffs Sue Business in Securities Litigation
Significant Changes as Lawyers Use Internet in Securities Litigation
Blake Bell, Founder and Editor-in-Chief of CyberSecuritiesLaw.com, 4/5/02
Also, see Bell's prior article (12/01) on this subject.
· Class counsel routinely scrutinize issuers’ Web sites, Webcasts and broadcast e-mails to investors searching for alleged misrepresentations or omissions of material fact that might form the basis for a lawsuit.
· Class counsel monitor financial message boards looking for leads and evidence for their cases.
· New categories of securities lawsuits, arbitrations and enforcement proceedings are emerging.
· Shareholder activists are using electronic bulletin boards and chat rooms to keep tabs on management and to learn about and involve themselves in securities class actions.
· Plaintiffs’ counsel are using so-called data clearinghouse Web sites to exchange data regarding securities suits.
· Plaintiffs’ counsel are using their law firm Web sites to make it easier to retain them to represent allegedly aggrieved shareholders.
· Class counsel are complaining that because their complaints, occasionally based on weeks of hard work and investigation, are immediately available via the Web, their allegations are being filched by other plaintiffs’ firms which quickly file copycat lawsuits.