NERA Economic Consulting has released a study entitled Recent Trends In Shareholder Class Action Litigation: 2009 Year-End Update. The study reaches the following notable conclusions:
(1) NERA predicts that there will be 235 filings by year end (down from 253 filings in 2008). Cases related to the credit crisis have fallen to around 30% of all filings, but the finance industry continues to hard hit with 53% of all filings naming a finance sector defendant.
(2) Only 5% of all filings contained insider trading allegations, which is down significantly from the pre-credit crisis period (e.g., 20% of all filings in 2005 and 2006 contained insider trading allegations).
(3) Excluding the IPO allocation cases, the average settlement value was $42 million. Although this is a signficiant increase over the $31 million average settlement value in 2008, the median settlement value stayed relatively flat at $9 million.