Filings hit highest level since 2008; a recap of 2015 securities litigation

FRT Admin
Site administrator
April 25, 2016

2015 was a busy year for securities class action filings reaching the highest number of filings since 2008, with a total of 234 suits compared to the 247 suits filed in 2008. Of the 234 suits filed in 2015, 189 of them were filed in federal court, again the highest since 2008, which saw a total of 223 filings in federal court.  Based on the suits filed in federal court, the historic annual average from 1997-2014 is 188 filed suits.  In the first half of 2015, only 87 suits were filed, but we saw a major increase of filings in the second half of the year resulting in 102 filings.  Despite the year after year decrease of companies listed on the U.S. exchange, approximately 1 out of 25 companies had securities suits filed against them in 2015

As we have previously discussed here, IPO-related securities increased from 17 filings in 2014 to 29 filings in 2015.  Also, 17.8% of IPOs completed in 2009-2014 were involved in a securities suit compared to the 14.8% from 2001-2008.  This increase is interesting because of the continuous downfall of companies going public year after year.  In 1996, there were 8,783 companies listed on the U.S.Exchange compared to the 5,305 companies in 2015.

Another prevalent trend in 2015 was the number of securities suits filed against non-U.S. companies listed on the U.S. Exchange.  In 2015, there were 35 suits filed against non-U.S. companies compared to 34 in 2014.  Despite the increment of only one more filing from 2014 to 2015, this is still well above the historical average of 22 filings.   For companies listed on the S&P 500, 2.6% of them had securities suits which are up from 2.2% in 2014, but still well below the historical average of 5.5%.

2015 was a busy year in securities class actions, to read more about the year click here.

About FRT

U.S. CLAIMS  I  GLOBAL GROUP LITIGATION  I  ANTITRUST  I  LITIGATION MONITORING  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is the 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.

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.