SECURITIES LAWSUIT SETTLEMENT FALLS 50%
New York March 19, 2009 13.00 pm: Based on a research conducted by Cornerstone, the average securities class action lawsuit settlement fell by about 50 % to reach $ 31.2 million in the year 2008.
Named as Securities Class Action Settlements: 2008 Review and Analysis, the report attributes the sharp drop to multi-billion dollar settlements. The average amount of cases settled in fiscal year 2008 reached $ 8 million, a drop of $ 1 million from the previous year. This was an all-time high for those cases which were settled from 1996 all through 2007, based on Cornerstone report.
Meanwhile, the sum of all settlements in the year 2008 dropped drastically from 110 to 99 in the previous year. According to Cornerstone analysts, the decline is less likely to transform into a trend in the coming years.
According to Joseph Grundfest, Stanford Law School Securities Class Action Clearinghouse and co-author of the report, “The settlement figures could bounce back in the coming few years as the cases usually associated with huge damages to the present financial collapse start working their way to the current judicial system”.
Based on the findings of the report, no mega settlements or settlement larger than $ 1 billion was made in the year 2008, which is in stark contrast to those in the former years. According to Cornerstone, during the past ten years, nine settlements amounting to more than $ 1 billion were made. However, it included lawsuits against Tyco International Ltd., Enron Corp and WorldCom.
According to Cornerstone, the mean length of class period in the year 2008 had touched yet another high of 800 days and above.
The average length of the class period in 2008 reached a new high of more than 800 days, nearly a year longer than the average for all settlements through 2007. The average class period before 2008 was 518 days.
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Submitted to Structured Settlement News
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