Cornerstone Research has released an updated report on post-Reform Act settlements of securities class actions through 2003. The findings include:
(1) Of the 96 settlements in 2003, almost 85% were for less than $20 million. Five cases settled for more than $100 million.
(2) 20% of post-Reform Act settlements have involved Section 11 or 12(a)(2) claims and median settlements as a percentage of “estimated damages” are significantly higher for these cases.
(3) Approximately 30% of post-Reform Act settlements have involved institutions serving as lead plaintiffs (as compared to approximately 15% before the Reform Act). After controlling for various factors, the report finds that settlement amounts are higher in these cases.
(4) Less than 15% of post-Reform Act cases have been accompanied by the filing of a derivative action.
Cornerstone’ also announced that its report on securities class action filings for 2003 (done jointly with Stanford Law School’s Securities Class Action Clearinghouse) will be released shortly.
Addition: The New York Law Journal (via law.com – regist. req’d) has an article on the report.