August 9, 2023
Securities Class Actions: A Bright Spot?
The specter of a successful securities class action suit is another risk that keeps securities lawyers up at night, but take heart: Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse recently published their latest report, Securities Class Action Filings—2023 Midyear Assessment, and it gives some encouraging news.
While the number of securities class-action filings has remained pretty steady compared to historical averages, US exchange-listed companies are actually less likely to face these types of lawsuit than they were from 2009 – 2022. Here’s more detail:
– At the current pace, only 3.4% of companies listed on major US exchanges are or will become subject to a core or M&A filing in 2023. This is in line with the percentage in 2022 but represents a large decline from 2016-2020 levels.
– The percentage of US exchange-listed companies subject to a core filing in 2023 H1 was 1.6%, on pace to be in line with that of 2022 but below the 2009-2022 average.
– The percentages of US exchange-listed companies subject to an M&A filing in 2022 and 2023 are the two lowest since tracking of M&A filings began in 2009. These rates remain well below 2016-2020 levels.
See the 33-page report for details on all sorts of key trends.
– Liz Dunshee