Corporate Governance

Federal Securities Class Actions Decline

By Adam G. Kurtz

The total number of federal securities class action lawsuits filed in 2010 decreased by 4%, compared to the same period last year, according to PricewaterhouseCoopers (PwC)?s ?Securities Litigation Mid-Year Update for 2010.?  Specifically, there were 70 such cases filed through 2Q 2010, compared to 74 cases through 2Q 2010 in 2009.  The PwC report further projected that if filings continue at a similar rate there will be a 10% decline for all of 2010.  This would be the second consecutive yearly decline of securities class action, down from their 2008 peak. 

?Although the financial services industry, ? continues to have the largest number of filings, the health industry, which includes filings in both the pharmaceutical and health services industries, ?  is not far behind,? said Grace Lamont, principal and U.S. securities litigation practice leader for PwC. 

PwC noted that federal securities class action lawsuits have become less common since the financial crisis of 2008.

Full post as published by PomTalk on September 24, 2010 (boomark / email).