Case Filings Remain Steady Through 2012, Litigation Time Lengthens

frtAdmin
FRT Admin
Site administrator
December 21, 2012

The number of securities class action cases that were filed in the court system throughout 2012, including projected cases, is on par to match the five-year average, according to NERA Economic Consulting’s “Flash Update: 2012 Trends in Securities Class Actions”. 195 cases were filed in 2012 by the end of November, a pace that would put total for the year at 213. As the impact of the credit crisis wanes, it is not surprising that the number of crisis-related cases filed has dramatically decreased from a high of 103 in 2008, to 4 at the time when NERA’s update was published. In contrast, the number of cases related to the merger objections remained steady, helping to make up for the dip in credit-crisis lawsuits.

NERA 2012 Trend SnapshotWhile the number of settled cases was significantly lower in 2012, instances of dismissed cases were much lower than average. The decrease in settled cases is a possible product of the litigation environment, or a pending Supreme Court decision dealing with the requirements of a class action surrounding the company Amgen. This decrease in settlements indicates a longer case resolution time. With fewer cases being dismissed and longer periods before settlements, it seems that 2013 could see an increase in settlements as compared to 2012.

It is true that the number of case settlements is lower than the historical average, but settlement values continue along with the five-year average. And excluding massive settlements of over $1 billion, this year’s average of $36 million actually surpasses the $32 million average for 2005-2011. We at Financial Recovery Technologies look forward to the release of a more comprehensive industry trend analysis which is likely to be released early in 2013.

ABOUT FINANCIAL RECOVERY TECHNOLOGIES
SETTLED  I  NON-US GLOBAL OPT-IN  I  ANTITRUST  I  GLOBAL PASSIVE  I  DIRECT OPT-OUT  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

 

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.