Peter Blute: “Mr. Chairman, the engine of economic growth in this country is under assault from some lawyers who give the term ``gone…”

“Mr. Chairman, the engine of economic growth in this country is under assault from some lawyers who give the term ``gone fishing'' an entirely new meaning. These strike-suit lawyers are trolling for easy money won from vulnerable companies whose only crime is being subject to a volatile market. Entrepreneurial high-tech companies in my State such as EMC Corp. based in my district are being hit with strike suits which seek damages for loss in stock value. This is a company that has created thousands of jobs in the State of Massachusetts. Since going public in 1986, it has been the subject of two such suits. One was filed less than 24 hours after the company disclosed quarterly earnings lower than the previous quarter. This kind of situation is not unusual. Hundreds of suits are filed by lawyers and professional plaintiffs who prey on small high-tech firms because their stocks tend to be more volatile and they are more inclined to settle. In fact, between 1989 and 1993, 61 percent of all strike suits were brought against companies with less than $500 million in annual sales, and 33 percent against companies with less than $100 million in sales. Mr. Speaker, the problem is critical, because these high-tech companies are the job-creating innovators, where many of our cutting-edge products originate.”