Let the Money Do the Monitoring

Judge William J. Haynes, Jr. (M.D. Tenn.) (pictured here during his 2004 Senate confirmation hearing) says that "to be sure, the plaintiff with the larger numeric loss is not automatically the plaintiff with the ‘largest financial interest’.” But “as to the Peoria Fund's various arguments” in the American Service Group securities class action, he reminded everyone that “it must be remembered that ‘[t]he manifest intent of the (PSLRA) is determining the Plaintiff most capable of pursuing the action and representing the interests of the class,’” and that “this standard has been described as "let the money do the monitoring.”

So, “given MARTA's losses, its assets and the limited number of Plaintiffs seeking lead plaintiff status, the Court does not ascertain any practical need for an alternate method for determining the largest financial interest nor for the appointment of co-lead plaintiffs.”

You can read In re American Service Group, issued August 28, 2006 at 2006 U.S. Dist. LEXIS 61779.

Nugget: “If, later in this litigation, good cause is shown to revisit this issue, any plaintiff may move the Court for reconsideration of its appointment of the lead plaintiff.”