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Hypocrisy by U.S. Chamber of Commerce Reaches New Low
U.S. Chamber Pretends to Represent Average Investors While Pushing to Protect Corporate Fraud and Crooked CEOs

(Wednesday, June 28, 2006 -Washington DC)—Today, in conjunction with a congressional hearing on securities fraud, the U.S. Chamber of Commerce called for Congress to further limit the ability of investors defrauded by U.S. Chamber members like Enron, Tyco and Worldcom to hold corporate wrongdoers accountable. In response, Jon Haber, chief executive officer of the Association of Trial Lawyers of America (ATLA), issued the following statement:

“The verdict isn't even cold from the criminal convictions in the Enron case and the U.S. Chamber of Commerce and the corporate CEOs it represents are already working to roll back consumer protections, including the post-Enron Sarbanes-Oxley reforms, and further limit the ability of defrauded investors to seek justice against corporate wrongdoers.

“Though the U.S. Chamber blames the civil justice system for economic woes, in fact it is fraud by corrupt CEOs that has a real negative effect on the U.S. economy. The last time the U.S. Chamber and its political accomplices in corporate crime sought to weaken our justice system it led to a massive corporate crime spree that included Enron, WorldCom, Adelphi and Tyco and cost the U.S. economy $460 billion.

“The idea that the U.S. Chamber – which sued the SEC to block pro-investor reforms and filed a friend of the court brief on behalf of corporate wrongdoers involved in the Enron scandal – is looking out for average investors would be laughable if it weren’t so offensive.

“In today's environment -- where those in political power are doing the bidding of their corporate campaign contributors -- the civil justice system is the last and only recourse for those cheated out of their life savings to hold big corporations, oftentimes members of the U.S. Chamber, accountable when they defraud their investors, cheat their workers, or raid their pension funds.”

Background on the U.S. Chamber of Commerce

• The U.S. Chamber Sought Lighter Sentences for Some Involved in the Enron Scandal. In 2005, the U.S. Chamber of Commerce filed a “friend-of-the-court” brief arguing for lighter sentences for top Merrill Lynch officials who were involved in the Enron scandal.[1]
• The U.S. Chamber Represented Enron. Enron was a member of the U.S. Chamber of Commerce. [2]
• The U.S. Chamber Sued the SEC to Block Pro-Consumer Reforms. In 2005, the U.S. Chamber of Commerce filed a suit against the Securities and Exchange Commission (SEC) to block a reform measure designed to protect the interest of consumers investing in mutual funds. According to Reuters, “the chamber sued the SEC to try to block implementation of a mutual fund governance rule that requires that fund board chairmen, and 75 percent of fund directors, be ‘independent,’ or free of direct ties to fund managers.”[3]

[1] “Chamber Files Brief On Enron Losses,” Washington Post, 3/29/05
[2] Petroleum Economist, 10/23/01
[3] “U.S. SEC, Top Business Lobby Clash on Enforcement,” Reuters, 3/9/06

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As the world's largest trial bar, ATLA promotes justice and fairness for injured persons, defends the constitutional right to trial by jury, and strengthens the civil justice system through education and disclosure of information critical to public health and safety. With 60,000 members worldwide, ATLA provides lawyers with the information and professional assistance they need to serve clients successfully and protect the democratic values of the civil justice system.