| | The Securities Class Action Clearinghouse provides detailed information relating to the prosecution, defense, and settlement of federal class action securities fraud litigation. The Clearinghouse maintains an Index of Filings of 2734 issuers that have been named in federal class action securities fraud lawsuits since passage of the Private Securities Litigation Reform Act of 1995. The Clearinghouse also contains copies of more than 25,500 complaints, briefs, filings, and other litigation-related materials filed in these cases.
XXXXXXXX
| | 2007 FILINGS: A YEAR IN REVIEW
2007 Activity Remains Below Historical Averages. Recent Increase in Litigation Activity Is Due to the Subprime Crisis and Stock Market Volatility
View the Press Release or download the Full Report
POST-REFORM ACT SECURITIES SETTLEMENTS THROUGH DEC 2007
Securities Class Action Settlement Totals Down 60 Percent in 2007, Finds Cornerstone Research. Number of Settlements with Estimated Damages above $1 Billion Lowest since 2003,But Median Settlement Reaches Highest Level Ever at $9 Million
View the Press Release or download the Full Report | | | OTHER DESIGNATED INTERNET SITES | | | |
The Clearinghouse offers regular updates identifying companies that have recently been named as defendants in federal class action securities fraud complaints.
If you would like to receive this information, please register here. |
In addition the Clearinghouse provides Annual and Quarterly Updates on trends in securities class action filings and settlements as well as access to a range of Articles and Papers that relate to the evolution of federal class action securities fraud litigation since passage of the PSLRA. |
| | | Calendar year 2001 differs from prior experience because of the proliferation of "IPO Allocation" lawsuits. These complaints generally allege that underwriters engaged in undisclosed practices in connection with the distribution of certain IPO shares. These complaints do not allege that issuers have engaged in fraud when describing their own business or financial circumstances.
“Mutual Fund” cases describe litigations in which plaintiffs allege that timing and late trading in funds has violated the federal securities laws.
Plaintiffs have also been filing "Analyst" cases in which they allege that brokerage firm analysts falsely provided favorable coverage for certain issuers. These complaints generally do no allege that an issuer has engaged in any wrongdoing and are therefore distinguishable from the large majority of lawsuits otherwise represented in the database. | | | | | | ©2006 Cornerstone Research | | _________________________________
NOTE: This and other metrics describing classaction activity are discussed more fully in Litigation Activity Indices | |
| FEDERAL LITIGATION BOX SCORE - 2007 EVENTS | | Most active District Court: | - | S.D. New York | | Most frequently sued Sector: | - | Financial | | Most frequently sued Industry: | | Mortgage Investment | |
While vigorous debate continues to swirl regarding the merits of class action securities fraud litigation, certain patterns appear to characterize litigation behavior during the five-year period since adoption of the PSLRA. In particular:
- The absolute number of issuers sued does not appear to have changed dramatically since passage of the Act, once the effects of the IPO Allocation Litigation are excluded. Litigation activity declined in 1996, but that decline was likely a transition effect;
- Since passage of the Reform Act, a larger percentage of litigation activity centers on allegations of accounting fraud, with revenue recognition issues emerging as particularly significant causes of litigation;
- Since passage of the Reform Act, a larger percentage of litigation activity also alleges trading by corporate insiders during periods when frauds are allegedly "alive" in the market;
- The dollar magnitude of settlement has increased noticeably, particularly in the settlement of "mega-cases." There have been seven post-Reform Act settlements in excess of $500 million: the WorldCom and Enron litigations are still pending, but have already reached settlement agreements of $6.128 and $4.760 billion, respectively; the Cendant litigation was settled for $3.525 billion ($3.185 billion in the common equity settlement and $340 million in the PRIDES settlement.); the IPO Allocation Litigation settled for $1 billion; McKesson is in the process to settle its class actions for $960 million; Lucent Technologies settled for $673 million; and Raytheon Corporation for $535 million.
-------------------------------------------------------------------------
[1] SOURCE: National Economic Research Associates (NERA)
Back to Top
| | | | | | RECENT FILINGS: |
|
|
|
5/1/2008
|
|
|
|
4/30/2008
|
|
|
|
4/21/2008
|
|
|
|
4/21/2008
|
|
|
|
4/18/2008
|
| OPTION BACKDATING
LATEST FILINGS | | | 02/06/2008 | | | 01/25/2008 | | | 10/04/2007 | | | 09/04/2007 | | | 08/10/2007 | | | 03/15/2007 | | | 03/15/2007 | | | 03/08/2007 | | |
| SUBPRIME MORTGAGE
LATEST FILINGS |
|
|
|
5/1/2008
|
|
|
|
4/21/2008
|
|
|
|
4/21/2008
|
|
|
|
4/18/2008
|
|
|
|
4/15/2008
|
|
|
|
4/14/2008
|
|
|
|
4/14/2008
|
|
|
|
4/11/2008
|
| |
| IPO ISSUERS: | Click here to see the list of issuers named in the Master Allegations document in re Initial Public Offering Securities Litigation Master Filed No. 21MC92(SAS). | |
