Gerson Comments that Lawyers Should Bear Securities Litigation RisksSecurities Law360 October 18, 2007
Stuart M. Gerson, a Member of the Firm in the Litigation and Health Care & Life Sciences practices at EBG's Washington, DC and New York offices, was interviewed in the October 16, 2007, issue of Securities Law360 on the current state of white-collar and securities litigation.
Regarding those aspects of securities law that required the urgent reform, Gerson said that "there are still too many securities fraud lawsuits with dubious loss causation undergirding the pleadings. ?... If the lawyers who generate large transaction costs are the principal beneficiaries of the litigation, they ought to bear the risk."
In the article, titled, "Q&A with Epstein Becker's Stuart M. Gerson," Gerson also noted that "we have only seen the tip of the iceberg with respect to investigations and fraud and derivative suits" in the area of health care, the largest and fastest-growing area of the economy.