Securities Suits Ease Back to Normal Following a Frantic Two Years
The wrath of the credit crisis and the ensuing Great Recession took its toll on securities litigation in 2008 and 2009. Securities class action suits (SCAS) remained strong during this period, but it was regulator activities from many levels that erupted. The credit crisis and the collapse of Ponzi schemes, headlined by Madoff, also resulted in a rapid expansion of suits alleging breach of fiduciary duties. As the economy stabilized, albeit at a relatively depressed level, securities suits floated back to earth in the first quarter of 2010, to a pre-credit crisis plateau. In Q1 2010, securities suits totaled 178, at an annualized rate of 712 and down 29 percent from 2009 at 1,003, the lowest level since 2005. Given that regulators have increased the coordination of their efforts since the credit crisis, forcing parallel proceedings, corporations and their directors and officers would be unwise to let their guards down during this relative calm in the litigation storm.
ADVISEN'S LARGE LOSS DATA
Advisen tracks significant lawsuits filed against companies and their directors and officers in its Master Significant Case and Action database (MSCAd). MSCAd is the most complete and accurate database of such lawsuits, consisting of more than 45,000 events and over $3.2 trillion in aggregate losses. Securities cases in MSCAd represent more than 8,900 events and over $86 billion in aggregate losses.
For information or a list of the suits click here
Advisen Webinar: First Quarter Securities Litigation Review, Sponsored by ACE
On Friday, April 16 at 11am EDT, join ACE's Scott Meyer, Willkie Farr's Michael Young, Willis's Ken Ross and the D&O Diary's Kevin LaCroix, for a webinar sponsored by ACE to discuss developments in securities litigation and the D&O market. The session will review Advisen's analysis of 2010 securities litigation and discuss the larger implications for underwriters, brokers and risk managers.
The meltdown of the subprime mortgage market and the subsequent global credit crisis were the principal drivers of securities litigation in 2007, 2008 and 2009. The number of new subprime and credit crisis cases has plummeted recent quarters, however, and nothing has yet arisen to spark a new round of securities-related lawsuits. D&O underwriters are breathing a sigh of relief, but they also are nervously scanning the horizon, watching for the events that will cause the next surge in claims.
The panel will be moderated by Advisen's Jim Blinn. As has become the standard for Advisen's securities litigation webinars, we expect a lively and informative discussion.
Reserve your Webinar seat here
