Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Securities class action settlements rebounded slightly in 2009 after experiencing a significant decline in 2008. That is the key finding of a report released Wednesday by Cornerstone Research, an economic and financial consulting firm. The report tracked 103 such court-approved settlements in 2009, up slightly from 97 in 2008. The total value of securities class action settlements grew by more than 35 percent, from $2.75 billion in 2008 to $3.8 billion in 2009. The average value of securities class action settlements grew in 2009 to $37 million from $28 million during the previous year. The report does not attribute the growth in settlements to the credit crisis of 2008. Most of the litigation tied to the stock market decline and credit crisis has yet to be resolved, and likely won’t produce settlements until later this year, 2011 or beyond, said Laura Simmons, a professor at the College of William & Mary Mason School of Business and senior research adviser at Cornerstone Research. Rather, the settlement numbers were higher in 2009 due to a relative dearth of comparable settlements in 2008 — a fact Simmons attributes to a wave of settlement activity between 2005 and 2007 that left the cupboard dry of cases in 2008. Unlike 2006 and 2007, there were no settlements of $1 billion or more in either 2008 or 2009, according to the report. “As we predicted last year, the decline in settlements that occurred in 2008 has proven to be temporary,” Simmons said. “Looking ahead, we anticipate that as cases brought in conjunction with the 2008 stock market decline and surrounding credit crisis issues are resolved, settlements are likely to continue to increase both in number and value.” Of the 103 settlements during 2009, 19 involved the finance sector, 16 involved the pharmaceutical industry and 15 involved the high-tech sector, according to the report. Coughlin Stoia Geller Rudman & Robbins represented the plaintiffs in 27 percent of the cases that settled in 2009, with Barroway Topaz Kessler Meltzer & Check representing 12 percent and Bernstein Litowitz Berger & Grossmann representing 10 percent.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.