Under present law counsel fees are recoverable for services instrumental in the enforcement of section 16(b) of the Securities Exchange Act of 1934. While vital to the effective enforcement of section 16(b), such fees tend to encourage overzealous investigation by shareholders' attorneys which often approaches unethical conduct. Recent decisions have attempted both to encourage enforcement and discourage unfavorable conduct. This note analyzes current case law in an attempt to determine whether it has so succeeded, and suggests an alternative which may provide effective enforcement of section 16(b) and yet avoid the ethical dilemma.
Counsel Fees for Discovery and Recovery of Short-Swing Profits,
1969 Duke Law Journal
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