Securities class action filings: 2017 year in review

Abstract

Purpose

This paper aims to provide an analysis of securities class action filings in 2017 along with related trends over time and a comprehensive current view of the securities class action landscape.

Design/methodology/approach

The paper details 2017 securities class actions and related trends by measures including the number and size of filings; market capitalization losses; litigation likelihood for US versus non-US exchange-listed companies; status and outcomes of filings (settled, dismissed, continuing); core versus merger and acquisition filings; individual versus institutional investors as lead plaintiffs; and concentration of class action activity by industry sector, stock exchange and court circuit.

Findings

The number of federal securities class action lawsuits filed in 2017 reached a record high for the second straight year. The jump was spurred by a sharp increase in lawsuits targeting mergers and acquisitions. The 412 securities class action filings in 2017 represented a more than 50 per cent increase from the previous record of 271 filings in 2016.

Originality/value

This paper details analysis by legal and industry experts.

Citation

Gould, J., Grundfest, J. and Aganin, A. (2018), "Securities class action filings: 2017 year in review", Journal of Investment Compliance, Vol. 19 No. 4, pp. 26-60. https://doi.org/10.1108/JOIC-04-2018-0019