Cornerstone Research has released an updated report on post-PSLRA settlements of securities class actions through December 2007. The findings include:
(1) There were 111 settlements in 2007. The aggregate value of those settlements, excluding the enormous Tyco settlement, was $3.8 billion.
(2) The median settlement value was $9 million in 2007, the highest in the post-PSLRA period. The report attributes the increase, in part, to the fact that the percentage of cases settling for $10-20 million increased substantially from prior years (to approximately one-quarter of all settlements).
(3) The number of settled cases involving companion derivative actions is increasing. More than 55 percent of cases settled in 2007 were accompanied by the filing of a derivative action, compared with 45 percent in 2006 and 35 percent in 2005. Settlements for securities class actions accompanied by derivative cases are significantly higher than for cases not involving them.
The press release announcing the report can be found here.