LYCOS RETRIEVER 
Class Action Lawsuits: Settlement
built 635 days ago
[Y]ou can't simply file a class action lawsuit and automatically have it be settled or come to court. The Court must approve the class definition, either during litigation or at the time of settlement.
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The study group has propounded a variety of possible theories for the precipitous drop in securities class actions. One absolutely preposterous theory, unsupported by data, is that securities fraud has dropped because of prior settlements and fines. A spokesman from the Stanford group states: "Economic theory suggests these factors should lead to a decline in the incidence of fraud--exactly what we have seen occur since the middle of 2005."
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