The biggest beneficiaries of class actions, on the whole, are investors, who have very little ability to police shady corporate managers unless they can band together (you know, as a class . . . a class of investors in the company) to bring the management frauds to light.
Class actions are one of the major reasons an American can invest money in the stock market and sleep at night. Without them, our stock markets would look even more like better parlors staffed by pickpockets eager to relieve you of your life savings.
Paul Bland of Public Justice calls attention to an important story on this point:
Have you EVER met an investor who said "I voted hoping that the President would make it easier for scam artists to steal my life savings, the way it is in China?"
I haven't, either.
The Washington Post story today shows how an unregulated securities market, without adequate government oversight, can harm investors. It's a story about how a rapidly growing number of people in China have lost their life savings to Ponzi schemes.
This post: https://bit.ly/2PCOEQKtraces how the proposals from some Trump SEC Commissioners to eliminate private securities fraud class actions would make it far more likely that Americans would be subject to the same kind of fraud that has been spreading in China. It discusses how securities class actions have gotten important remedies in the U.S. for victims of Ponzi schemes in the past. I hope that you'll read the blog post.