SECURITIES

SEC: Frivolous Suit Ban Causing More State Cases: A controversial law limiting frivolous securities fraud lawsuits in federal courts appears to be causing more such state cases to be filed, a Securities and Exchange Commission official said. Richard Walker, the SEC’s general counsel, said the law does not appear to have deterred legitimate lawsuits. He reported, however, “many fewer class actions filed in federal court” since its passage, about 40 compared with 140 cases that would have been expected. Whereas the SEC has seen fewer federal securities fraud cases, he said, some cases appear to be migrating to state courts. California in particular has had a rush of state filings, he said. California-based high-tech companies were among leaders in the campaign to pass the law.