2016 Year in review

U.S. Securities Class Action Settlements

Last year, we saw a significant surge in U.S. securities litigation and class action settlement activity.

  • Class actions filed against companies in the financial sector doubled last year, and cases against foreign issuers, especially European companies, were also on the rise, according to Cornerstone Research. Filings against S&P 500 firms reached a seven-year high, with one in 12 serving as a defendant during 2016. M&A objection filings quadrupled to 80 cases, a trend that has increased steadily in recent years
  • 2016 also saw the highest level of settlements reached since 2011 with an average settlement value of $50M. The ten largest settlements accounted for almost $4B. Settlement
  • While there was a record number of new cases filed, we saw a slowdown in the amount of time damaged investors received their recoveries from past settlements. It seems the longer claim administration time is being compounded by an increase in new settlements.

Financial Recovery Technologies expects these trends will continue due to an influx of new complaint filings in 2016, which should yield a growing pipeline of potential future settlements.

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