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.