Cornerstone and Stanford Release Interim Report On Filings In 2006

Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse have released an interim report on federal securities class action filings in 2006. The findings include:

(1) The number of filings in the first half of 2006 is at the lowest level for any six-month period in the last ten years. There have been 61 filings to date, which would annualize to 123 filings (as compared to a post-PSLRA average of 194 per year).

(2) The filings that have been made in 2006 are associated with significantly lower market capitalization losses as compared to 2005 and historical averages.

(3) Options backdating suits have not contributed significantly to the number of filings, with most of the litigation activity in that area focused on derivative actions. (Securities Litigation Watch is keeping a running total on the number of options backdating securities class actions, which currently stands at eleven.)

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