The Plaintiffs'decision to Sue Auditors in Securities Litigation: Private Enforcement or Opportunism?

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I. INTRODUCTION

The first half of this decade saw a crescendo of criticism of U.S. securities laws: articles appeared in the business and legal press alleging that these laws were being abused.l Much of the criticism focused on the plaintiffs' attorney:

Abusive and unwarranted litigation is a problem not just for the accounting profession, but for business and the economy generally. A small group of attorneys is reaping millions of dollars by bringing federal securities fraud claims (under SEC Rule lOb-5). .... These attorneys use the threat of enormous legal costs, a lengthy and disruptive discovery process, protracted litigation, and damage to reputation to force large …