Securities Lawsuits on the Rise for 4th Consecutive Year
According to Advisen LTD’s latest report on securities litigation, it appears that 2011 will be another record breaking year. The Advisen reports reveal that records were set in 2008, 2009 and 2010, making 2011 the fourth consecutive year that the number of securities lawsuits hit new levels.
Notwithstanding the fact that the credit crisis has eased up since 2008, some 1,293 securities lawsuits were filed in 2010 alone. During the first quarter of 2011, 362 securities lawsuits were file raising expectations that 2011 will be another record breaking year, since that represents a 47% increase in the number of cases filed in the first quarter of 2010. Clearly we are on track for another banner year, with 1,448 cases already having been filed up 12% from the entire total of 2010. The causes of action asserted in the cases range from breach of fiduciary duty to fraud, class actions and shareholder derivative cases, among other things.