The Intersection of Fee-Shifting Bylaws and Securities Fraud Litigation

37 Pages Posted: 21 Mar 2015 Last revised: 8 Apr 2015

See all articles by William K. Sjostrom

William K. Sjostrom

University of Arizona - James E. Rogers College of Law

Date Written: March 19, 2015

Abstract

The Article examines the intersection of fee-shifting bylaws and federal private securities fraud suits. Specifically, the Article hypothesizes about the effects fee-shifting bylaws would have, if enforceable, on private securities fraud litigation. It then turns to the validity of fee-shifting bylaws under federal law and concludes that they are invalid as applied to securities fraud claims. In light of this conclusion, the Article considers whether Congress should pass legislation to validate fee-shifting bylaws and determines that it should not.

Note: The Appendix at the end of the Article includes some data on corporations that have adopted fee-shifting bylaws or charter provisions between May 8, 2014 and March 16, 2015.

Keywords: fee-shifting, bylaws, ATP, securities fraud

JEL Classification: G28, G34, G38, K22, K41

Suggested Citation

Sjostrom, William K., The Intersection of Fee-Shifting Bylaws and Securities Fraud Litigation (March 19, 2015). Washington University Law Review, Forthcoming, Arizona Legal Studies Discussion Paper No. 15-18, Available at SSRN: https://ssrn.com/abstract=2580943

William K. Sjostrom (Contact Author)

University of Arizona - James E. Rogers College of Law ( email )

P.O. Box 210176
Tucson, AZ 85721-0176
United States

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