Reuters reports that yesterday Judge Kaplan told a securities litigation conference at the city bar that securities class action litigation is “a jerry-rigged system never thought through from beginning to end.”  He said that plaintiffs’ lawyers have an too much of an incentive to settle to secure their fees, and that the fees end up being too large of a proportion of investor recovery.  He also suggested that too many cases may be thrown out on motions to dismiss.  (H/T Alison Frankel.)