Almost every securities class action lawsuit that is not dismissed eventually settles; very few of the cases actually go to trial. However, there have been the rare cases that have gone to trial and there are some important lessons to be learned from these cases. In the following guest post, Daniel Tyukody of the Goodwin Procter law firm takes a look at recent cases in which the plaintiffs prevailed at trial, and the ways that in the post-trial phase, the defendants were able to reduce the damages that the plaintiffs were able to secure. The lessons from these cases have important implications for negotiations in the many securities class action lawsuit cases that settle.
I would like to thank Dan for his willingness to publish his article on this site. I welcome guest post submissions from responsible authors on topics of interest to this site’s readers. Please contact me directly if you would like to submit a guest post. Here is Dan’s article.
Securities class actions that reach verdict are rare, but these rare events provide valuable insights for negotiating the roughly half of all cases that result in settlement. This article describes techniques for minimizing class damages following a judgment for plaintiffs, focusing upon two recent trial victories by plaintiffs, namely In re Vivendi Universal Sec. Litig. (Vivendi)  and Jaffe Pension Plan v. Household Int’l, Inc. (Household), as well as the author’s experience defending an issuer with a final, nonappealable verdict in its post-judgment claims process, which resulted in a settlement and the vacating of the fraud judgment.
Continue Reading Guest Post: Winning the Securities Litigation Damages Battle After Losing the Liability War