Center for American Progress

Opinion: Could the SEC Secretly Abolish Investors’ Right to Sue?
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Opinion: Could the SEC Secretly Abolish Investors’ Right to Sue?

Andy Green writes about whether the U.S. Securities and Exchange Commission could block shareholders from suing companies to recover losses.

If the Trump administration has its way, large public companies will get a giant gift that would effectively shield them from accountability when they violate the securities laws.

The Securities and Exchange Commission (SEC), the independent agency that declares itself the “Investor’s Advocate,” is at this center of the fight over whether shareholders will be able to recover for harms caused to them. SEC staff have been reportedly seeking out test cases to permit companies to block defrauded shareholders from going to court to recover their losses.

The above excerpt was originally published in MarketWatch. Click here to view the full article.

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Authors

Andy Green

Senior Fellow