Tuesday, September 27, 2011

Securities law and the contraction of standing

As I've mentioned, a friend of mine maintains that the general contraction of standing is a contagion spreading out from securities law, now affecting other areas of the law such as consumer protection class actions.

Short background: Lehman Brothers issued numerous different mortgage backed securities in a short period of time, all of which essentially had the same basic misrepresentations about the quality of the securities. The court held that the named plaintiffs only had standing to bring claims for the securities they had purchased themselves, and dismissed claims pertaining to the other securities. These are two amicus briefs focused on the standing issue.

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