Claims and settlement sizes fall for US federal class actions

The average settlement has fallen 60 per cent from US$86m to $34m in 2014 in cases accusing companies of securities fraud, according to research from Stanford University and Cornerstone Research.

Rudchenko Liliia

The amounts claimed have fallen 45 per cent over the eight years from 2006 to 2014 - to a collective sum of US$57b last year. Only 11 companies in the S&P 500 were targeted in 2014, the lowest total since the research began in 2000. 

Financial crisis

Jacob Zamansky, a New York plaintiff lawyer in securities class actions, said: 'The passage of financial crisis cases, and the bull market, have impacted the number and magnitude of cases. We will see plenty of fraud and misconduct by issuers and banks, which is keeping us busy.' Source: Reuters

Email your news and story ideas to: news@globallegalpost.com

Top