U.S. Chamber Institute for Legal Reform (ILR)

ILRlogo200x200.jpgThe U.S. Chamber Institute for Legal Reform (ILR) is a national campaign, representing the nation's business community, with the critical mission of making America's legal system simpler, fairer and faster for everyone.  Founded by the U.S. Chamber of Commerce in 1998 to address the country's litigation explosion, ILR is the only national legal reform advocate to approach reform comprehensively by not only working to change the legal culture, but also to change the legislators and judges that create that culture.

Securities Class Action Litigation: The Problem, its Impact, and the Path to Reform

Private securities class actions present a serious threat to the health of the U.S. economy. The costs of securities litigation are enormous, but the benefits are miniscule. The culture of abusive class actions, driven by a multibillion dollar plaintiffs’ lawyer industry, is eroding the competitiveness of U.S. capital markets at a time when they face perhaps their greatest threat from foreign competition.

This report looks at flaws of the broken system – building on work of previous commissions, combined with an examination of the fraud and abuse endemic in the securities plaintiffs’ bar – and calls on Congress to enact a number of reforms to address these concerns, including: Enacting the “Securities Litigation Attorney Accountability and Transparency Act,” (S.3033, H.R. 5463) introduced by Senator John Cornyn (R-TX) and Congressman Jeb Hensarling (R-TX); Ensuring coordination between public and private enforcement; Providing defendants equal access to appeal denials of motions to dismiss a suit; and, Curbing abuse of civil discovery.