NERA Economic
Consulting has released its yearly report on the state of securities class actions.
The most interesting takeaway for investors is how remarkably stable the world
of financial litigations remains despite all the changing variables.
That may sound
contradictory, but consider: for the past four years new federal class action
complaints have spiked from an historical average of about 225 new cases each
year to over 400. (Both 2018 and '19, according to NERA's count, had 433 new
complaints.) Meanwhile, the number of settlements continues to hover around 100
per year and more. What's going on here?
The
trend, as we have mentioned before, is thanks to an increase in filings by
smaller law firms against smaller corporations. In their quest for lead
plaintiff representation, upstart law firms trying to break into the securities
class action space are taking cases that bigger law firms have traditionally
ignored. Many of these cases are weaker-- some even say frivolous-- and are
therefore dismissed faster than they were before.
Dismissal
rates bear this out: for the first half of the last decade, settlement rates
for securities class actions were over 51%, reaching 58% in both 2014 and 15.
In 2016 the spike in new class actions leapt from 232 in the previous year to
299. As a result of this flood of new cases, some on dubious legal ground, the
settlement rate fell first to 45% in 2016, then to 43% in '17, and then 31% for
the past two years. (It's important to note though that these numbers only account
for resolved cases. There is a
large backlog of unresolved cases, so the settlement rates overall could
hypothetically rise.)
Meanwhile
the settlements for the past decade has remained remarkably stable, between 100
to 130 new settlements each year. This may be disappointing for investors who
would hope a spike in new cases means a spike in recovery opportunities, but
that is a glass-half-empty view. In reality, many of these new
complaints--complaints, as noted, that other firms would have traditionally
ignored-- do wind up settling. And so, despite the lower settlement rates,
there are still just as many of them each year for investors to participate
in.
This
means that the recovery opportunities not only persist, but persist in
remarkably stable numbers despite the fluctuations in both the stock market and
the legal world.
Whether
you are a busy investor who wants to recoup losses, and or a money manager who
wants to keep up with class actions for your firm, CCC is the smart choice for
you. As this latest year-end round up shows once again: class actions are not
only here to stay, they have been, and will be, a consistent and persistent
recovery source for those who can keep up the flow.
Plaintiffs allege Alibaba's anti-competitive practices and a canceled IPO drove down stock price
CCC is Preparing Claims for Qualcomm Investors, Deadline Only Weeks Away
Plaintiffs allege Uber IPO was a "train wreck" for investors
Under Armour settles securities suit over allegations high inventories led to low profits
Apple, Boeing, and Weatherford Each Agree to Mega-Settlements
Alphabet Settles Securities Suit for $350 Million
Stock Loan Antitrust Settlement: A big opportunity should not be a big hassle
Alexion Pharmaceuticals Settles Securities Class Action over Alleged Illicit Sales Practices
Allegation that You’re in Bad Hands with Allstate Leads to $90 Million Settlement
Claim Forms Are Coming in the Payment Card Interchange Fee. CCC Can Help
Alexion Pharmaceuticals Settles Securities Class Action over Alleged Illicit Sales Practices
Allegation that You’re in Bad Hands with Allstate Leads to $90 Million Settlement
Claim Forms Are Coming in the Payment Card Interchange Fee. CCC Can Help
World Cup Bribery Scandal Leads to $95 Million Grupo Televisa Settlement
Case Profiles: The Kraft Heinz Company Securities Litigation and Fair Fund
Millions in Unsellable Inventory Leads to $109 Million Cardinal Health Securities Settlement
Securities Class Action Settlements in 2022 Hit Highest Levels in 15 Years
Micro Focus Settles Suit Alleging it Botched HPE Purchase for $107.5 Million
Wells Fargo Settles Securities Suit for $300 Million
Generic Drug Price-Fixing Allegations Lead to McKesson's $141 Million Settlement
Tesla Fends Off Securities Suit With Rare Victory in a Rare Trail
Elon Musk's Infamous 4-20 Tweet Leads to Rare Securities Litigation Trial
Barclays Massive Bond Over-Issuance Leads to a Securities Class Action
$809.5 Twitter Settlement Arrives at Last
How to Claim Your Piece of the $5.54 Billion Payment Card Settlement
Anti-competition Probes and Overexpansion Lead to Multiple Class Actions Against Amazon
How CCC Helps Investors Participate in Foreign Financial Litigations
Cryptic Tweet Leads to $40 Million Tesla Fair Fund
Nielsen Holdings, Market Share King, Settles Securities Suit over Its Own Market Troubles
Infrastructure Cost Overruns Leads to $129 Million Granite Construction Securities Settlement
Petrobras Fair Fund Offers $85.32 Million in Relief to Harmed Investors
Barclays and JPMorgan Settle Mexican Bond Antitrust Litigation for $20,700,000
Deadline Is Soon for the $27.5 Million GreenSky Securities Settlement
Symantec, now known as NortonLifeLock, Settles Securities Suit for $70 Million
Corrections Corporation of America Settles Securities Litigation over the Safety of Its Prisons
Twitter Securities Class Action Ends with an $809.5 Million Settlement
Honest Company, Boston Beer Company, Waterdrop, and Longeveron Face Securities Class Action Suits
Door Manufacturer JELD-WEN Settles Securities Suit Related to Price-Fixing Scandal
Allergan Settles Securities Suit Related to Price-Fixing Scandal for $130 Million
Nikola Trucks Scandal Leads to Securities Suit and a Criminal Indictment of Its Founder
Why Every Investor Needs a Class Action Claim Filing Partner
Willis Towers Watson Settles a Pair of Merger-Related Suits for $90 Million
Snap Settles Two Suits in State and Federal Court for $187,500,000
Another MBS Settlement: $275 Million Morgan Stanley Fair Fund
Santander Consumer Holdings USA Securities Class Action Provides $39 Million to Investors
Avon Settles Suit Over Brazilian Market Practices
The LIBOR Bondholder Settlement: Several Big Problems and One Simple Solution
Snap, Parent Company of Snapchat, Settles Suit Over Allegations They Understated Competition
Eight Years in the Making, First Solar Settlement Provides $350 Million to Harmed Investors
Coronavirus Related Securities Class Actions Arrive
GSE Bonds Antitrust Litigation Update
Equifax Data Breach Leads to Securities Litigation Settlement
Wells Fargo Fair Fund to Provide $500 Million to Investors
NERA Year-End Report for 2019: More complaints, bigger backlog of unresolved cases
GSE Bonds Claim Filing Deadline Extended to February 28, 2020
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