Securities class action trends in 2015

trends2015 was a big year for securities class actions and marks the highest annual filings since 2008 with a total of 191. 186 of the filings were in the federal court with 5 filed in the state court. Even with this increase in securities filings, the amount of U.S.-listed companies is about half compared to the total number of public companies in 1997.

As noted here, 15% of all securities suits filed were IPO-related filings. In 2014, IPO-related securities filings made up just 10% of the annual filings. Also, we have previously discussed the increase of securities suits towards foreign companies. In 2014 and 2015, there were 34 annual filings against non-U.S. companies, which is still well above the historical annual average of 22 filings.

In 2015, according to the Standard Industrial Classification Code Categories, there were 99 different categories represented in securities suits. The life science sector was amongst the most common to have securities suits filed with 21 filings toward Pharmaceutical Preparations and 28 against Drug companies. Out of the 191 securities suits, 71 were filed against companies in the life sector and high tech companies. Most of these trends were expected based on figures from previous years, but it will be interesting to see if they become more prevalent in 2016 or if new trends arise.

Read more about 2015 trends in securities class actions here.

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