Leading securities regulation scholars have repeatedly called for legislatively expanding the Securities and Exchange Commission’s (SEC) control over private securities litigation. These proposals grow out of profound doubts about the private securities class action regime and frustration with the decentralized multi-enforcer approach to securities enforcement. But these centralization proposals have failed to gain traction.
In a new paper, I map out a different way to harness the SEC’s power to improve the private securities litigation regime. Rather than expand SEC authority, I argue that the SEC can and should make better use of its existing authority in this domain.… Read more