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29 January 2019
New York, NY—441 new securities class actions were filed in US federal courts in 2018, the highest number of filings since the aftermath of the 2000 dot-com crash, according to “Recent Trends in Securities Class Action Litigation: 2018 Full-Year Review,” an annual report released by NERA Economic Consulting.
“While the number of filings was roughly unchanged compared to 2017, the pace of new litigation accelerated over the second half of the year and the average size of new cases was considerably larger,” said NERA Managing Director Dr. David Tabak. “Merger-objection cases constituted about half the 441 total filings, but growth of such cases slowed sharply versus 2017, indicating that the explosion in filings sparked by the Trulia decision may have run its course.”
In total, 351 securities class actions were resolved in 2018, the second consecutive year in which a record number of cases concluded. Resolution numbers were once again dominated by a record number of dismissals, which outnumbered settlements more than two-to-one for the first time.
In 2018, the average settlement rebounded to $69 million from a near-record low in 2017, largely due to the $3 billion settlement involving Petróleo Brasileiro S.A.—Petrobras, the fifth-highest settlement ever. The median settlement in 2018, $13 million, was more than twice that of 2017, primarily due to higher settlements of many moderately sized cases and, generally, fewer very small settlements.
Additional Key 2018 Trends
NERA Securities Class Action Trends Report Series
NERA has been analyzing trends in securities class actions for more than 25 years. This year-end study, “Recent Trends in Securities Class Action Litigation: 2018 Full-Year Review,” is co-authored by NERA Senior Consultants Stefan Boettrich and Svetlana Starykh, with contributions from Dr. Tabak. In addition to NERA’s US report, the firm produces annual reports on securities class action litigation in Canada and on UK regulatory enforcement actions.
To download the report, visit: http://www.nera.com/publications/archive/2019/recent-trends-in-securities-class-action-litigation--2018-full-y.html
About NERA
NERA Economic Consulting (www.nera.com) is a global firm of experts dedicated to applying economic, finance, and quantitative principles to complex business and legal challenges. For more than six decades, we have been creating strategies, studies, reports, expert testimony, and policy recommendations for government authorities and the world’s leading law firms and corporations. We bring academic rigor, objectivity, and real-world industry experience to issues arising from competition, regulation, public policy, strategy, finance, and litigation.
NERA’s clients value our ability to apply and communicate state-of-the-art approaches clearly and convincingly, our commitment to deliver unbiased findings, and our reputation for quality and independence. Our clients rely on the integrity and skills of our unparalleled team of economists and other experts backed by the resources and reliability of one of the world’s largest economic consultancies. Continuing our legacy as the first international economic consultancy, NERA serves clients from major cities across North America, Europe, and Asia Pacific.