2015 has closed but a trend last year, which we previously mentioned here, is expected to continue throughout 2016. In 2015, there were 34 securities suits filed against non-U.S. companies. This topped the historical average of 22 filings and represented 18% of all securities suits filed in 2015. Out of these suits, 18 different countries were involved with China having the most at 15.  Historically, more suits against Chinese companies are common compared to other countries. IPO-related securities suits have also been on the rise in 2015,  four of those being filed against Chinese companies who went public in 2014/2015.  Brazil  saw the next most with three suits filed. Of the suits filed against Brazilian companies, 2 were related to the Petrobras bribery scandal and the others were related to environmental issues.

With some large filings resulting from scandals like VW or Petrobras, it is expected that we will see more securities suits filed against non-U.S. companies. Strangely, it was assumed the U.S. Supreme Court’s decision in Morrison v. National Australia Bank,  would decrease the number of foreign companies facing securities litigation in the U.S. This prediction has turned out to be incorrect as we have seen a continuous rise since the Morrison decision in 2010.  As we take on the New Year, it will be interesting to see if securities suits against non-U.S. companies continue to rise.

Read more about filings against foreign companies here.

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