Class Action Reform Bill Could Hurt Pension Funds, Institutional Investors, Law Firms

Bill may prohibit institutional investors from hiring the same law firm more than once.

Vice Dean Myriam Gilles

February 16, 2017 Chief Investment Officer - A class action reform bill currently before Congress would be a serious setback for pension funds and institutional investors, and is possibly unconstitutional, according to legal scholars.

The “Fairness in Class Action Litigation Act of 2017,” (H.R. 985), which was introduced last week by Congressman Bob Goodlatte (R-Va.), seeks to maximize recoveries by victims, while eliminating unmeritorious claim.

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Myriam Gilles, vice dean of Yeshiva University’s Benjamin N. Cardozo Law School, said in comments submitted to Congress that “the bill would radically restrict access to justice for injured consumers, employees and small businesses by, among other things, imposing requirements upon class plaintiffs that are both unrealistic and unnecessary.”