Report: 2011 on Track for Record Securities Lawsuit Filings
Securities suit filings are on track to set a new record in 2011, according to Advisen Ltd’s most recent quarterly report and sponsored by ACE. Following on the heels of the credit crisis, which sparked record-setting litigation in 2008 and 2009, 2010 set a new record at 1,293 suits filed.
The 362 securities suits filed in the first quarter of 2011 were 47 percent higher than the first quarter of 2010. Based on the number of suits filed in the first quarter, 2011 may surpass last year’s all-time high.
The suits comprise shareholder derivative suits, breach of fiduciary duties suits, and securities fraud suits. The latter are primarily actions brought by regulators and law enforcement agencies, as well as securities class action suits which represent 18 percent of new filings and account for the largest settlements. In the first quarter of 2011, the average securities class action settlement was $54.6 million.
Source: Advisen Ltd
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