Released on = June 24, 2007, 9:22 pm

Press Release Author = public watchdog

Industry = Law

Press Release Summary = Hartley Bernstein, a New York-based securities attorney
expresses concern that recent Supreme Court Tellabs decision will discourage
legitimate suits against corporate frauds and stock scams.

Press Release Body =
Hartley Bernstein, a leading New York securities attorney, warns that a recent U.S.
Supreme Court decision will have a \"disturbing chilling effect on investors who may
have been victimized by corporate fraud or stock scams.\"

Hartley Bernstein was commenting on the Supreme Court\'s rejection of an investor
suit against Tellabs, a telecommunications equipment manufacturer. In an 8-1
decision the Supreme Court ruled that investors must show that corporate executives
had a \"cogent and compelling\" intent to engage in misconduct. The Court rejected a
lower court decision that held cases should go to trial if \"a reasonable person
could infer that the defendant acted with the required intent.\"

The Supreme Court ruling was a \"body blow to investors,\" Mr. Bernstein said.

Hartley Bernstein, whose law practice is based in New York, is the founder of
StockPatrol.com, widely recognized as a leading watchdog for investors. \"The
decision represents an unqualified victory for corporate lobbyists and their
legislative supporters who have been fighting to limit the ability of investors to
file class actions charging corporate fraud and challenging securities fraud.\" There
is a \"real danger,\" Bernstein said, that investors will no longer challenge
corporate conduct unless they have evidence of a \"smoking gun.\"

Bernstein also expressed concern that some plaintiff\'s class action lawyers, who
work on a contingent-fee basis, \"will discourage clients or shy away from
litigation, even where there is credible evidence of corporate misconduct, because
the Supreme Court has raised the bar for success.\"

Mr. Bernstein agreed that there is no place for a glut of frivolous lawsuits. \"Not
every failing company has been victimized by executive misconduct. Not every
corporate leader is consciously steering the ship toward the iceberg,\" he said.
\"But, investors should remain vigilant,\" Bernstein insisted, \"and must remain alert
for signs that executives did have the requisite intent.\" Where that evidence
exists, corporations and their executives must continue to be held accountable.

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Contact Details = public watchdog
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