Wednesday, May 24, 2006
Findlaw's Writ has a good piece by Michael Dorf (Columbia) taking off from the Milberg Weiss indictment and providing an overview of class action litigation more generally, discussing what he terms the "love/hate" relationship Americans have with class litigation. He contends that the alleged conduct of Milberg Weiss is more or less unsurprising:
In sum, we have a system of class action litigation rife with principal-agent problems. Ironically, in the corporate context, we employ it as a mechanism for combating rampant principal-agent problems within corporations.
In these circumstances, one can hardly blame the government and the grand jurors in the Milberg, Weiss case for wanting to stop what they saw as an effort to add yet another layer of principal-agent problems.