Last Call for Non-Proportionate Bar Orders

The means by which courts implement bar orders in securities class actions continue to evolve. Currently, courts use three widely recognized methods to calculate the judgment reduction credit given to a non-settling defendant who is barred from pursuing contribution claims from a settling defendant. One method, pro rata, has already lost favor in the courts and in the near future, the second method, pro tanto, will most likely fall from grace as well. In contrast to the first two, the last method, proportionate fault, is rising in popularity due to its greater likelihood of leading to equitable results. It is, therefore, last call to those seeking to have their bar order filled by anything other than the proportionate fault method.

27 minute read December 26, 2006 at 08:44 AM

By

Ralph Ferrara And Alycia Kellman