Credit Crisis Litigation Update: It is Settlement Time

Thu Oct 31 16:24:38 EDT 2013
By Dr. Faten Sabry, Eric Wang, and Joseph Mani

It has been more than six years since the onset of the global credit crisis. This new NERA paper -- by Senior Vice President Dr. Faten Sabry, Senior Analyst Eric Wang, and Analyst Joseph Mani -- finds that there has been a significant increase in the number and size of credit crisis-related settlements. Meanwhile, the pace of new filings has slowed as housing markets continue to improve and delinquencies and defaults decline. The authors examine the recent trends of settlement activity and review some of the major settlements in credit crisis litigation. They then examine the current trends in filings, including the types of claims made, the nature of defendants and plaintiffs in the litigation, and the financial products involved.

Another version of this paper has been published by The Harvard Law School Forum on Corporate Governance and Financial Regulation.

This is the tenth installment of the NERA Insights series of articles dedicated to the analysis of the credit crisis. The others are available on the right-hand side of this page.