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Article: AS Simple Proposal for Reducing Securities Fraud Suits

Article from:
THE JOURNAL RECORD
Article date:
March 24, 1995
Author:
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Let's say you run a video game company. You've just been told that promised deliveries of this year's planned blockbuster, "Burn 'Em in Salem," will be delayed at least three months. The trouble is that the pitiful screams of the witches in the test version cannot be heard above the roar of the flames.

Who do you call first? Your ad agency? The big retail chains? Members of the corporate board? Ghostbusters?

More likely, the company's lawyers. For once the delay is announced, your stock is probably headed for a nose dive. And frequently _ arguably much too frequently _ securities fraud lawyers will be filing lawsuits on behalf of those who bought the stock (or chose not to sell it) ...

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