According to the Stanford Law School Securities Class Action Clearinghouse (SCAC), a collaboration with Cornerstone Research, class action lawsuits reached their highest level since 2008. Federal securities class action litigation rose to 189 filings in 2015, an 11% increase over 2014 levels.
Some of the important trends include:
- Dismissals within the first three years of the filing of a class action peaked for 2010 and 2011 filing cohorts. In filing cohort years 2012, 2013, and 2014, early dismissals (those within the first year) have declined relative to 2010 and 2011 cohorts.
- Reversing trends noted at year-end 2014, filing activity against Industrial and Technology firms increased to levels more consistent with historical averages, while filings against Energy companies declined to average historical levels.
- Biotechnology, healthcare, and pharmaceutical companies (included in the Consumer Non-Cyclical sector) together accounted for 19 percent of total filings in the first half of 2015. Within this group, filings against pharmaceutical firms were the most common class action.
The press release can be found here:
Kamal Hubbard is a lawyer by training who is certified in Fraud Examination, Cybersecurity, and Decentralized Finance.