Fenwick securities enforcement co-chair Susan Muck talked about the latest in securities class action and derivative litigation at the 2019 PLUS D&O Symposium in New York.
Muck explored the factors driving the record number and costs of securities class actions during a panel titled “What's Going on with Securities Class Action & Derivative Litigation?”
According to Business Insurance, data presented at the panel by Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse noted that 8.4% of U.S. exchange-listed companies were subject to litigation filed in federal courts in 2018, compared with 3.7% in 2004.
“I think at this point you’re primarily seeing different law firms getting involved on the plaintiff side, and I would characterize this set of firms as less discerning, bringing back a bit of the race to the courthouse,” Muck told the panel. “For a long time, we saw cases filed weeks or months after a stock price declined. Now, cases are filed almost immediately after a stock price decline.”
The full article is available on Business Insurance.