AUSWR
The Association of U S West Retirees
 

 

 

The Opt-Out Lawsuit:  Everyone's Doin' It!
The Wall Street Journal
Posted by Peter Lattman
Saturday, May 6, 2006

The Law Blog has posted before on the opt-out, the latest headache for companies defending themselves from securities class-action suits.  Plaintiffs’ lawyers are increasingly not signing on to settlements negotiated by other firms and pursuing their own litigations instead.

Now opt-out lawsuits are piling up against Qwest Communications, which already agreed to pay $400 million to settle civil securities fraud allegations stemming from the company’s alleged accounting fraud. Ironically, the lead lawyer in the class action is none other than Lerach Coughlin, which has been a trailblazer of the opt-out trend.

In recent weeks several investors, including New York State Common Retirement Fund and the San Francisco Employees Retirement System, have decided to file separate lawsuits against Qwest and its former executives.  Wall Street’s taking notice:  A Morgan Stanley telecom analyst expressed concern over the opt-out lawsuits, writing that the raise the risk “of higher legal expenses and settlements, and could even threaten the proposed class-action settlement.”

Permalink | Trackback URL: http://blogs.wsj.com/law/2006/05/05/the-opt-out-lawsuit-everyones-doin-it/trackback/

http://blogs.wsj.com/law/2006/05/05/the-opt-out-lawsuit-everyones-doin-it/