They work hard for other people's money

Lawyers have always been good at finagling new money-making schemes and American culture is as infectious as the flu. The link between these pervasive themes: US class action style is catching on worldwide, making litigation lawyers very happy.

Just this week, Royal Dutch Shell announced it will pay $352.6 million for defrauding European shareholders by overstating reserves. The stinger is that Shell will also have to pay $47 million in fees to the American lawyers who represented the European shareholders.

Concerns abound that the adoption of class action overseas could give rise to dual suits, and dual costs. In the case of Shell, the settlement will actually alleviate US suits because most of the shares were purchased on Europe exchanges. But for shares purchased on the NYSE, penalties remain: investors will pursue another class action suit.

'It's no wonder the US plaintiffs' bar sees Europe as a huge untapped market,' said Linda Kelly of the U.S. Chamber of Commerce's Institute for Legal Reform in a recent Wall Street Journal article.

Now that Europe is embracing US style action, lawyers are cashing in on their active soliciting of European shareholders. I guess the hard work paid off.

Janine Armin
Assistant editor
Corporate Secretary magazine