Aug. 6 - There were 78 securities class actions filed in the first half of 2014, down from 91 in the latter half of 2013 but up slightly from the 75 in the first half of that year, according to an Aug. 6 report from Cornerstone Research.
The 2014 number is down from the half-year average of 95 from 1997 to 2013.
In the first half of the year, one in approximately 60 companies traded on U.S. exchanges faced a class action, the report said.
Over the first half of 2014, the report said, there were also no "mega filings," which it defined as cases with "dollar disclosure loss" of $5 billion or more or a "maximum dollar loss" of $10 billion or more. There had been at least one mega filing in every half year since 1998.
The report also cited the U.S. Supreme Court's Halliburton decision in June, which did not overturn the fraud-on-the-market theory but did allow defendants to rebut the presumption of an efficient market before the class certification stage.
"Had that decision gone the other way, the already low numbers of class action filings would have been even lower, and would likely be trending toward zero," Joseph Grundfest, a professor at Stanford Law School and former Securities and Exchange Commissioner, said in a news release.
Grundfest runs the Securities Class Action Clearinghouse at Stanford, which compiled the data on the class actions.
To contact the reporter on this story: Rob Tricchinelli in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Susan Jenkins at email@example.com
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)