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AAJ Asks SEC to Come Clean on Latest Efforts to Protect Corporate
America at Expense of Shareholders
Files FOIA Request Regarding Tellabs Case Being Considered by U.S.
Supreme Court
Tuesday, February 13, 2007 (Washington, DC)—The American
Association for Justice (AAJ) has asked the Securities and Exchange
Commission (SEC) to publicly disclose the commission’s interactions
with the fiber optics company, Tellabs Incorporated, amid news reports
that the SEC is supporting Tellabs against shareholders seeking to
hold the company accountable in the U.S. Supreme Court.
“The SEC is supposed to be the watchdog of Wall Street that
protects shareholders, pension funds, and the public’s confidence
in the integrity of the markets,” said AAJ Chief Executive Officer
Jon Haber. “In light of the troubling reports that the SEC has
decided to intercede in a way that could harm shareholders, the public
has a right to know how this decision came about. This is just the
latest in a series of audacious moves by some in corporate America
to roll back the Enron reforms and avoid accountability.’’
AAJ submitted a Freedom of Information Act request to the SEC on
February 13, 2007, asking the SEC to reveal any and all documents
or records detailing communication with Tellabs Inc. Last Friday,
the commission filed an amicus brief with the U.S. Supreme Court in
the case, Tellabs Inc. v. Makor Issues and Rights Ltd. (Case No. 06-484),
urging the adoption of a legal standard that would make it more difficult
for shareholders to hold negligent corporations accountable when they
defraud investors.
The recent news reports regarding the SEC are the latest in a series
of efforts by some corporations to roll back the Enron reforms and
evade responsibility for negligence, including: the Committee on Capital
Markets Regulation’s proposal to remove the right of shareholders
to hold public companies accountable for fraud; calls by the U.S.
Chamber of Commerce and others to amend the Sarbanes-Oxley Act; and
the SEC’s efforts to limit disclosure and transparency requirements
for public companies.
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As the world's largest trial bar, AAJ (formerly known as the Association of Trial Lawyers of America) promotes justice and fairness for injured persons, defends the constitutional right to trial by jury, and strengthens the civil justice system through education and disclosure of information critical to public health and safety. Serving members worldwide, AAJ provides attorneys with the information and professional assistance they need to serve clients successfully and protect the democratic values of the civil justice system. Visit http://www.justice.org
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