Consumer Groups Ask Senate Committee to Side with Investors’ Rights over Corporate Interests

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Consumer Groups Ask Senate Committee to Side with Investors’ Rights over Corporate Interests: AAJ Issues Letter In Support Of Corporate Accountability Following Enron Reforms

For Immediate Release: April 17, 2007

AAJ Communications
202.965.3500, x369
media.replies@justice.org

Washington, DC—A group of pro-consumer organizations (consisting of Consumer Federation of America, Consumer Action, U.S. Public Interest Research Group, Consumers Union and the American Association for Justice) will tomorrow issue a joint letter to the Senate Committee on Small Business and Entrepreneurship, focusing on the positive influence of the Sarbanes-Oxley Act in protecting shareholders’ interests. American Association for Justice (AAJ) CEO Jon Haber issued the following statement:

“We are only five years removed from the scandals of WorldCom and Enron that damaged shareholder confidence and sent ripples throughout the economy, yet the SEC is backing away from the very reforms passed after those devastating events. The SEC is charged with safeguarding shareholders’ rights, but recent actions have proven they are clearly siding with corporate interests seeking to evade accountability for negligence.”

The AP (11/14/02) quoted SEC Commissioner Paul Atkins as saying the string of accounting failures at big companies has cost U.S. households nearly $60,000 each on average as some $5 trillion in market value was lost. Commissioner Atkins continued, calling them “spectacular failures” in the wake of the recent resignation of his successor Harvey Pitt due to a crisis of public trust.

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As the world's largest trial bar, the American Association for Justice (formerly known as the Association of Trial Lawyers of America) works to make sure people have a fair chance to receive justice through the legal system when they are injured by the negligence or misconduct of others—even when it means taking on the most powerful corporations. Visit http://www.justice.org/newsroom.

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