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Home / Insurance / New securities cases decreased by 22% in 2020

New securities cases decreased by 22% in 2020



The plaintiffs filed 334 new securities cases in federal and state courts by 2020, a decrease of 22% from 427 in 2019, according to a report released on Wednesday.

However, total in 2020 was 49% higher than the 1997-2019 average, according to the report issued by San Francisco-based Cornerstone Research Inc. and the Stanford Law School Securities Class Action Clearinghouse in Stanford, California.

"Core applications", which exclude concentration- and acquisition-related archives, according to the report. decreased 12% to 234 in 2020.

The number of state court applications for claims under the Securities Act from 1933 decreased to 17, from 53 in 2019. The report said that the decline was probably due to March 2020 Delaware's Supreme Court Sciabacucchi ruling, which restricts certain shareholder searches to federal courts.

Sasha Aganin, Cornerstone Research Senior Vice President and co-author of the report, said in a statement, “In the last si x months, four California courts have enforced these federal forum election regulations; no court has ruled that they cannot be enforced. In the future, other courts are likely to consider this issue.

Last year, 1

9 COVID-19-related applications were made against companies that were negatively affected by the virus or had tried to address the demand for products due to the virus, according to the report. Cryptocurrency was the second most common trend, with 11 entries.

Five notifications last year related to specialty acquisitions compared to six in 2019. However, given that the number of SPAC IPOs increased to 248 in 2020, which increased more than $ 75.3 billion, from 59 in 2019, " that trend is likely to change ", the report states. Directors and liability insurance experts have also said they are relying on increased SPAC-related disputes. Catalog

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