Not in the corporation's best interests

Article Abstract:

The American Law Institute proposal of new rules on shareholder litigation constitute an ill-advised liberalization of standing to sue. The restrictions on standing currently in place make sense because they permit boards to perform their statutory duty of managing corporations. If individual shareholders were permitted easier access to the courts, decision-making power would be transferred from the board to any shareholder willing to file suit. More stringent requirements to dismiss a derivative suit would positively affect their settlement value and lawyers' incentives to file.

Corporate directors, Standing (Law), Stockholders' derivative actions, Shareholder lawsuits

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Class wars: the dilemma of the mass tort class action

Article Abstract:

The tension between individual autonomy and group interests in mass tort class actions has been resolved in favor of group interests of late since defendants have been using class actions to foreclose the claims of potential future claimants. A class action model must be developed that prioritizes the autonomy interests of participants to address both group and individual concerns. Settlements should be monitored solely by plaintiffs' attorneys, the right to opt out must be deferred to include future claimants and open-ended settlements should be promoted.

United States, Class actions (Civil procedure), Class action lawsuits, Mass tort suits

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