This strategy is a blueprint for competitiveness that will unleash the economy and manufacturing’s outsized multiplier effect. Importantly, manufacturers’ aspirations—the four goals laid out in the pages that follow—are ones that all Americans who want to maintain our country’s economic advantage can rally around.
Manufacturers Ask Supreme Court to Review Class Action Lawsuits That Hurt Competitiveness
Washington, D.C., 10/11/13 - In a brief filed today, the Manufacturers’ Center for Legal Action joined other business groups in calling for the U.S. Supreme Court to grant review in Halliburton Co. v. Erica P. John Fund, Inc., challenging a key precedent in securities class action cases.
“We hope that the U.S. Supreme Court will take up this important case that would help to address the scourge of securities class action lawsuits that siphon productive capital out of the manufacturing economy while enriching a narrow group of trial lawyers,” said National Association of Manufacturers (NAM) Senior Vice President and General Counsel Linda Kelly. “Private securities class action litigation imposes a significant cost burden on manufacturers, impairing their ability to grow and create jobs by diverting financial resources toward legal fees and settlements, often with no net benefit to shareholders.”
The case involves the “fraud on the market” theory of liability in securities class actions. This theory has greatly facilitated securities class actions and has contributed to their exponential growth since the late 1980s.
The Manufacturers’ Center for Legal Action serves as the leading voice of manufacturers in the courts, representing the 12 million men and women who make things in the United States. The Center strategically engages in litigation as a direct party, intervenes in litigation important to our manufacturers and weighs in as amicus curiae on important cases. To read more about the Manufacturers’ Center for Legal Action, click here.