On January 15, 2013, The Harvard Law School Forum on Corporate Governance and Financial Regulation released their study on the 2012 Trends in Securities Class Actions. A few interesting facts were revealed.
One fact found was that federal securities class actions continue to stay around the average, even with the credit crisis “all but ended.” The 2007-2011 average for federal securities class actions was 221, and 2012 is on pace to have 213 securities class action filings.
However, 2012 had a record low for settlements and dismissals. There were only 92 settlements in 2012 which was the lowest number since 1996. Only 60 cases were dismissed in 2012, which was a 50% reduction from 2011 and the lowest since 1998.
Lastly, the median settlement amount for federal securities class actions was $36 million in 2012. This number is close to the $42 million average from 2005-2011 and up from the 2011 average of $23 million.