Howard H. Chang and David S. Evans (Law and Economics Consulting Group (LECG), LLC and Law and Economics Consulting Group (LECG), LLC – Cambridge, MA Office) have posted Has the Pendulum Swung Too Far? (Regulation, Vol. 30, No. 4, Winter 2007-2008) on SSRN. Here is the abstract:
The prosecution of corporate fraud has garnered increasing attention in recent years. When guilt is certain, justice is easy. But prosecutors make mistakes in bringing cases – sometimes through carelessness, other times through zealotry – and judges and juries err in finding guilt. We argue that the balance struck by the prosecutorial and judicial system has tipped too far toward pursuing criminal indictments against companies and their executives. The result is harm to the general public, whose members depend on a dynamic, competitive economy for their welfare.