Number of Securities Class Action Settlements Reached in 2010 Hit Lowest Level in a Decade, Says Report
Per a new study by Cornerstone Research Inc., 86 securities class action settlements were approved in 2010-that’s significantly less than the 101 securities class action settlements that the courts approved in 2009. The settlements for last year’s cases totaled $3.1 billion. In 2009, the settlements reached $3.8 billion.
One reason for this may be that some securities class action lawsuits, including a number of complaints related to the 2007 – 2009 financial collapse, are taking a longer time to settle because they are likely more complex. Close to 200 securities class actions related to the credit crisis have been filed. Largest settlements under consideration include:
$624M – Countrywide Financial Corp.
$475M – Merrill Lynch & Co. Inc.
$124.8M – New Century Financial Corp.
$80M – MoneyGram International Inc.
Also per the report, total funds in court-approved settlements for 2010 dropped 17.8% from the settlement fund level in 2009. 70% of securities class action cases that were settled last year included allegations over generally accepted accounting principals-compare that to the 65% of cases settled the year before.
Our stockbroker fraud law firm represents individuals and institutions with securities cases against investment advisers, broker-dealers, brokers, and others. Filing your own claim or lawsuit usually gives you the opportunity to recover more than you would if you opt to be part of a securities class action complaint. Over the years, we have helped thousands of investors who have suffered financial losses get their money back.
Related Web Resource:
Read the Report (PDF)
Related Blog Posts:
Charles Schwab & Co. Defendant in Class-Action Securities Fraud Lawsuit Filed on Behalf of Schwab Total Bond Market Fund Investors Over CMOs and Mortgage-Backed Securities, Stockbroker Fraud Blog, September 7, 2011
$277 Million Verdict Against Apollo Group for Alleged Misstatements to Investors Upheld by US Supreme Court, Institutional Investors Securities Blog, March 22, 2011