Abstract

http://ssrn.com/abstract=1293926
 
 

References (25)



 
 

Citations (5)



 


 



Motions for Lead Plaintiff in Securities Class Actions


Stephen J. Choi


New York University School of Law

December 1, 2008

NYU Law and Economics Research Paper No. 08-53

Abstract:     
Using a dataset of securities class actions filed from 2003 to 2005, this paper assesses the effect of the lead plaintiff presumption enacted as part of the Private Securities Litigation Reform Act of 1995 (PSLRA) on agency costs between lead counsel for the class and class members. Examining the pre-trial motions for lead plaintiff for each class action, the paper reports evidence that plaintiffs' attorneys retain significant control over the selection of lead plaintiff, cutting side deals to determine the selection of lead plaintiff and thereby lead counsel. Using proxies for where plaintiffs' attorneys have relatively greater influence over the selected lead plaintiff, the paper reports that plaintiffs' attorneys with greater power are able to negotiate higher attorneys' fees as a percentage of the recovery and work fewer hours.

Number of Pages in PDF File: 61

Keywords: Securities litigation, lead plaintiffs, class actions

working papers series


Download This Paper

Date posted: November 3, 2008 ; Last revised: June 17, 2009

Suggested Citation

Choi, Stephen J., Motions for Lead Plaintiff in Securities Class Actions (December 1, 2008). NYU Law and Economics Research Paper No. 08-53. Available at SSRN: http://ssrn.com/abstract=1293926 or http://dx.doi.org/10.2139/ssrn.1293926

Contact Information

Stephen J. Choi (Contact Author)
New York University School of Law ( email )
40 Washington Square South
New York, NY 10012-1099
United States
Feedback to SSRN


Paper statistics
Abstract Views: 985
Downloads: 224
Download Rank: 77,338
References:  25
Citations:  5

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.344 seconds