X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
John C. Coffee Jr.

The results are now in for 2018, and, in terms of securities class actions, it was another near-record year with a bumper crop of lawsuits. Some 403 federal securities class actions were filed in 2018, down slightly from 412 in 2017 (which was the highest year since 2001), but more than 200 percent above the average number for 1996 to 2016 (which was 193). (This data comes from Kevin M. LaCroix, “Securities Suit Filings Continued at Heightened Pace in 2018,” The D&O Diary, (Jan. 6, 2019) at pp 1-2.) Viewed together, 2017 and 2018 show a significant inflation in the rate of securities class action filings, particularly when one recognizes that the number of publicly listed companies has shrunk significantly (chiefly because of mergers and bankruptcies). If we use the 2017 year-end total number of U.S. publicly traded companies (4,411), the cases filed against publicly traded companies in 2018 (some 385) imply that 8.77 percent of all publicly traded companies were sued in securities class actions just in 2018—which litigation rate is the highest rate since 2006. This 8.77 percent rate is more than three times the average annual litigation rate over 1996-2016 (which was 2.9 percent). (Id. at p. 3. The litigation rate in 2017 was also a record at the time—8.4 percent.) As a result, public companies now face an over 1 in 12 chance this year of attracting a securities class action (if the 2018 rate persists).

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at customercare@alm.com

 

America's Claims Executive (ACE) 2020Event

ACE Leadership Forum & Expo is the annual conference for Senior Claims Executives in Insurance organizations.

Get More Information
 

SuperConference 2020Event

SuperConference is the premier forum for informing, advancing and inspiring today s General Counsel from Fortune 1000 Companies.

Get More Information
 

SuperConference 2020Event

SuperConference is the premier forum for informing, advancing and inspiring today s General Counsel from Fortune 1000 Companies.

Get More Information
 

SuperConference 2020Event

SuperConference is the premier forum for informing, advancing and inspiring today s General Counsel from Fortune 1000 Companies.

Get More Information
 

General Counsel Summit (GCS) 2020Event

General Counsel Summit is the premier event for in-house counsel, hosting esteemed legal minds from all sectors of the economy.

Get More Information
 

General Counsel Summit (GCS) 2020Event

General Counsel Summit is the premier event for in-house counsel, hosting esteemed legal minds from all sectors of the economy.

Get More Information
 

General Counsel Summit (GCS) 2020Event

General Counsel Summit is the premier event for in-house counsel, hosting esteemed legal minds from all sectors of the economy.

Get More Information
 

Banking Litigation & Regulation Forum 2020Event

Delivers the key insights and practical solutions to acutely address the complex minefield of UK banking litigation & regulation.

Get More Information
 
 

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.