Sue, Sue, Sue-Duel

Is there any class in class action lawsuits? A better question might be whether there are any shareholders in a shareholder lawsuit? As investors we are bound to walk the fine line between badmouthing debacle-chasing attorneys and showing concern for those who get swindled by unscrupulous corporations.

Where do you stand? Do you take the stand? This week we Duel over the very delicate matter of shareholder lawsuits. Louis Corrigan (TMF Seymor) and Bill Barker can't seem to agree on the merits of the ever-growing pool of class action lawsuits. A verbal grapple over the gavel awaits, and look at this, we have a ringside seat with your name on it.

You Get to Vote!

After reading all of the arguments, cast your vote for the winner of the Duel. We'll tabulate results each week and revisit them from time to time to see whether you were right! As always, we invite you to join us in the Dueling Fools Message board to continue the duel.

[Any suggestions, comments, praise, or flames, please send them along to the Dueling Fools Team.]

The Bull... Let me concede the obvious: class action shareowner lawsuits are, at best, a poor solution to a problem. While some plaintiffs' attorneys (particularly the dominant Milberg Weiss Bershad Hynes & Lerach) make off with millions of dollars, defrauded shareowners of the target company get back a couple of dimes on the dollar -- at most. Continue...

The Bear... I’m not entirely sure what we’re dueling about here. Both shareholders and companies suffer under the current state of affairs in the securities class action field, and basically lawyers are the only ones who profit under the current system. Is Louis arguing that shareholders, on the whole, actually benefit from these strike suits? If so, sit right back and you’ll hear a tale. Continue...

Results for last week's Averaging Down Duel

Answer	Percentage
I can't make up my mind	3%
Rick Munarriz's Bull argument	43%
David Forrest's Bear argument	32%
They were both excellent	17%
They were both lame	4%