We saw it back in July, and now we're seeing it again:  squabbling between plaintiffs' law firms over what I have dubbed the "passive voice press release."   These recurring spats are between Law Firm A that files a securities class action and properly issues a press release/"notice to class members" under Section 21D(a)(3) of the Reform Act; and Law Firm B that follows the filing of such a lawsuit with its own press release that looks every bit like a "notice to class members" but with one slight twist--Law Firm B has not filed a lawsuit.  Rather, Law Firm B announces that a lawsuit seeking class action status has been filed [Passive Voice Alert!] in the United States District Court for the Southern District of New York on behalf of all persons who purchased the common stock of XYZ....

Non-English majors in the putative class who read such a press release might reasonably assume that if Law Firm B is going to the trouble of announcing that a lawsuit "has been filed," that just maybe Law Firm B was the firm that actually filed such a lawsuit, and that Law Firm B is a good place to start, therefore, if they want to join in as a plaintiff.  At least that seems to be the fear of the Law Firm A's of the world.

In today's spat, Law Firm A is Lerach Coughlin, which filed a securities class action lawsuit against Refco on October 11, and issued this statement yesterday that began as follows:

On October 11, 2005, the law firm of Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach Coughlin") (http://www.lerachlaw.com/cases/refco/) filed a complaint on behalf of all those who purchased the common stock of Refco, Inc. ("Refco" or the "Company") (NYSE: RFX).  The complaint alleges a series of false and misleading statements associated with the company's accounting practices and follows a lengthy investigation by Lerach Coughlin. Since Lerach Coughlin filed a complaint, The Law of Firm of Schatz & Nobel has issued a press release claiming to offer "information" about joining the suit.  Be advised that this firm has not even filed a complaint.  Rather, the press release appears to be  an advertisement designed to solicit clients so that the firm can participate in this case.

Schatz & Nobel's passive voice press release that prompted this statement is available here.  Curiously, the press release contains this sentence at the end:

While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of  the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free....

Does that mean that if you contact S&N to view a copy of the complaint "initiating the class action" that they will provide you with the Lerach Coughlin complaint?