Attorneys for plaintiffs dodged a bullet in the previous year when the U.S. Supreme court spared a 100-year old case, which served as a legal pin in today’s investor class action suit.
Despite such victory, new reports indicated that securities class actions have lost a bit of firepower.
While numerous security class actions filed in the federal court moved only a bit last year, the filing size measured by shareholder losses were a lot smaller in 2014 compared to the year before, according to a report released this week by the Stanford Law School Securities Class Action Clearinghouse and by Cornerstone Research
What’s the reason behind the dip last year? One of them is the surge in the stock market last year, as indicated by Joseph A. Grundfest, a scholar from the Stanford Universities securities who helped set up the report.
The size of settlements in the previous year shrank, as reported by the NERA Economics Consulting on yearly trends regarding securities class actions. NERA, which recently revealed its report, observed that the average amount of settlement dipped by 38% to 61% last year compared to 2013, depending on the calculations done.