Important Securities and Finance Trends Captured in Three NERA Trends Reports

05 March 2019
By Stefan Boettrich, Svetlana Starykh, Erin B. McHugh, Bradley A. Heys and Robert Patton

In three deep-diving reports released early in 2019, NERA consultants explore the latest and most urgent trends in securities class actions in the US and Canada, and in financial regulation in the UK.

US Trends

In their report, Recent Trends in Securities Class Action Litigation: 2018 Full-Year Review, NERA Senior Consultants Stefan Boettrich and Svetlana Starykh reveal that 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.

The report also finds that, 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.

UK Trends

In the 2018/19 Trends in Regulatory Enforcement in UK Financial Markets mid-year report, NERA Associate Director Erin B. McHugh provides an in-depth analysis of activities carried out by the UK regulator, the Financial Conduct Authority (FCA). 

The report includes insight on the FCA’s continuing use of non-pecuniary enforcement measures against firms, the increasing proportion of fines issued against individuals rather than firms and the current focus on the timeliness and accuracy of capital market disclosures. 

Canada Trends

Director Bradley A. Heys and Associate Director Robert Patton also released the latest edition of their annual report, Trends in Canadian Securities Class Actions: 2018 Update. The report uses NERA’s proprietary database of information on Canadian securities class actions to analyze trends in filings and resolutions.

The authors found that eight new securities class actions were filed in Canada during 2018, one more than in 2017, and one fewer than in 2016; and six of the eight new filings are shareholder class actions involving companies with shares listed on a public stock exchange, five of which include claims pursuant to the statutory secondary market civil liability provisions of the provincial securities acts (i.e., “Statutory Secondary Market” cases).

Each of these reports contains further analysis and explanation. The authors invite interested readers or those seeking more information to contact them directly.