TO ALL INVESTORS IN CALIFORNIA:
After researching into proposition 211 in the upcoming November ballot (Attorney-Client Fee Arrangements. Securities Fraud. Lawsuits.), I feel obliged to write a message to everyone who will be voting. This measure was written by trial lawyers, who stand to lose a substantial amount of income since congress passed the bill limiting frivolous securities lawsuits at the end of last year. This proposition, if passed, will prohibit restrictions on attorney fees in all California lawsuits. It will also open the floodgates to frivolous lawsuits against California businesses. The types of companies most affected will be high tech companies, whose stock prices are very volatile and prone to manipulation by speculators and professional traders. This proposition adds "Presumption fraudulent acts affected market value of security", which means that the company is presumed to have acted in a fraudulent way to affect it's stock price, and it is up to the company to prove it's innocence. This provision alone guarantees out of court settlement, since it is very difficult to prove innocence in such circumstances.
The end result would hurt the hundreds of high tech companies in California, large or small, and may drive many of them out of this state, if not out of business. Our companies have enough trouble competing with foreign competitors as it is, with our free trade policies not adopted by other governments. Why are we handicapping our businesses even more with such stupid propositions, designed to enrich a small segment of our community, namely the lawyers?
I am not related to any such companies; I am an independent professional, and an amateur investor, like many of you. However, a substantial portion of my life savings is in tech stocks, and I hate to see these companies get hurt. Please read the proposition carefully and make up your own mind.
I'm sorry if this offends anyone; I think it's appropriate to mention it here since Intel is one such company that will get hurt.
Adrian |
