Posted on 04 Aug 09
An Advisen Ltd. report shows an increase in securities-related lawsuits filed during the first weeks of the third quarter and suggests a second-quarter lull in the litigation may have been an aberration.
New York-based Advisen said that plaintiffs filed 221 securities lawsuits in what the firm described as a “hyperactive first quarter.” In the second quarter, just 140 such suits were filed, including 37 class actions, a sharp decrease from the second quarter.
“However, an uptick in securities class action suits filed in the first few weeks of the third quarter suggests that the second quarter was only a breather in what is shaping up to be an active year for securities litigation,” Advisen said in a statement.
Financial-sector companies “were especially in the plaintiff bar's crosshairs” in the second quarter, the consultant said.
Advisen also said federal securities class action suits no longer account for the majority of securities suits, as was true in the past. In the second quarter, the most frequent claims were securities fraud suits filed by regulators and law enforcement agencies.
Advisen's report is available at https://www.advisen.com/downloads/sec_lit_Q22009.pdf.