The total value and number of securities class action settlements increased in 2009 to $3.8 billion, a jump of more than 35% from 2008, according to the recent annual report, Securities Class Action Settlements: 2009 Review and Analysis, released by Cornerstone Research.
The securities fraud litigation reflected in the report represents lawsuits brought roughly between 2004 and 2006, as it takes an average of three to five years to settle a complaint. Securities case filings related to the credit crisis in 2008, for the most part, are yet to be resolved.
Professor Laura Simmons of the College of William & Mary, and a Cornerstone Research senior advisor, said in a statement that, “As we predicted last year, the decline in settlements that occurred in 2008 has proven to be temporary. 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.”
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