Securities Suit Settlements

There were a record number of securities class action lawsuits filed against tech companies in 2019, according to a new report from Cornerstone Research. The report, entitled “Tech Company Securities Class Action Filings and Settlements: 2015-Q1 2020 Review and Analysis” (here) also shows that the number of securities suit filings against tech companies increased each year compared to the prior year during the four-year period from 2016-2019. Cornerstone Research’s July 15, 2020 press release about the new report can be found here.
Continue Reading Cornerstone Research: Tech Companies Hit with Record Number of Securities Suit in 2019

In yet another significant #MeToo-related development, the parties to the Signet Jewelers securities class action lawsuit have agreed to settle the case for $240 million. There are a number of interesting features to the settlement, as discussed below; among other things, over $200 million of the settlement amount is to be funded by insurance. The settlement is subject to court approval. The plaintiff’s March 26, 2020 letter to the court regarding the settlement can be found here. The parties’ stipulation of settlement can be found here.
Continue Reading Signet Jewelers Settles #MeToo-Related Securities Suit for $240 Million

As I have noted in a number of posts (most recently here), the size of securities class action settlements rose significantly in 2018 compared to recent years. But what do the 2018 securities class action settlements look like when broken down according to the lead plaintiffs’ firm involved in the settlement? That is the question answered in a recent report from ISS Securities Class Action Services. The April 3, 2019 report, entitled “The Top 50 of 2018” takes a look at the top 50 plaintiffs’ firms ranked by aggregate size and number of settlements can be found here.  
Continue Reading Plaintiffs’ Firms Ranked by Total 2018 Securities Suit Settlement Size and Number

Wells Fargo has agreed to pay $480 million to settle the securities class action lawsuit arising from the company’s fake customer account scandal. The lawsuit followed in the wake of allegations that the bank had opened millions of accounts on behalf of customers frequently without the customers’ knowledge or consent, and in some instances based on fictitious customer information. As discussed below, the massive securities suit settlement, which is subject to court approval, is among the largest ever. The company’s May 4, 2018 press release about the settlement can be found here. The settlement was also disclosed in the company’s May 4, 2018 filing on Form 10-Q, here. A May 4, 2018 press release about the settlement by Union Investment, the lead plaintiff in the action, can be found here.
Continue Reading Wells Fargo Settles Phony Account Securities Suit for $480 Million

stocks_bondsWhen the topic is securities class action litigation, what is usually considered are lawsuits brought under the federal securities laws by shareholders. By way of illustration, when considering the extent of a company’s potential exposure to a future securities class action lawsuit, the starting point is usually the company’s market capitalization (that is, the number

Beginning in 2010 and accelerating in 2011, plaintiffs’ lawyers filed a wave of securities class action lawsuits against U.S.-listed Chinese companies, many of which obtained their U.S. listings via reverse merger. These cases have been making their way through the courts, and some have now reached the settlement stage. The settlements seem to share more in