Stefan Boettrich and Svetlana Starykh are Senior Consultants at NERA Economic Consulting. This post is based on a NERA Economic Consulting publication by Mr. Boettrich and Ms. Starykh.
In the 25th anniversary edition of NERA’s annual study, Recent Trends in Securities Class Action Litigation, we examine trends in securities class action filings and resolutions in 2017. New findings discussed in this year’s report include an increase in filings, again led by a doubling of merger-objection filings.
Highlights of the 2017 report include:
- A record 432 federal securities class actions filed in 2017, the third straight year of growth, and a 44% increase over 2016.
- Federal merger-objection filings more than doubled for the second consecutive year to 197 in 2017.
- A total of 353 securities class actions were resolved in 2017—a post-PSLRA high. Of those, 148 cases settled, coming close to the 2007 record of 150.
- The average settlement in 2017 fell to less than $25 million, a drop of roughly two-thirds compared to 2016.
- Aggregate NERA-defined Investor Losses were $334 billion in 2017, a 50% increase over the five-year average.
- Aggregate plaintiffs’ attorneys’ fees and expenses were $467 million, a drop of roughly 65% to a level not seen since 2004.