Securities class-action lawsuits, long a booming area of the
law, dropped substantially in 2011, hitting a decade low, according
to a study released Wednesday by Stanford University Law School and
Cornerstone Research, a consulting and litigation-support firm.
The number of securities class-action settlements in 2011 dipped
25 percent, to 65, down from 86 the preceding year, the study
Savett, chair of the substantial-securities litigation practice at
Berger & Montague P.C. in Philadelphia, said a flurry of
securities lawsuits initiated against banks, mortgage lenders, and
investment banks after the financial market collapse of 2008 and
2009 have mostly worked their way through the system. Also, she
said, Supreme Court rulings have made it more difficult for
plaintiffs to survive motions to dismiss and to win discovery.
"Securities litigation will always be there," Savett said.
"There will always be fraud, and there will always be cases
powerful enough to survive the very high level of pleading that is
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