Chamber of Commerce White Paper Questions Value of Securities Class Actions
February 6, 2014
Ira A. Schochet responds to the U.S. Chamber of Commerce's White Paper on the Value of Securities Class Actions
For his part, Ira Schochet, a New York-based partner at Labaton Sucharow LLP, described the study as "tired rhetoric without any basis."
"Given a chronically underfunded SEC, private litigation necessarily serves as the chief means by which the securities laws are enforced, both from a deterrence and compensation perspective," Schochet told Bloomberg BNA. "And it is the enforcement of those laws that provide American capital markets with its principal advantage, in terms of transparency and trustworthiness, that they have over those of any other in the world."
The attorney noted that in 2012 alone, settlements in private securities cases yielded $2.9 billion, the vast majority of which went into investors' pockets, "significantly dwarfing whatever the SEC was able to return to victims of securities fraud during the same time period."