Applications for securities class applications involving technology companies increased by more than half in 2019, says a research report.
85 new cases were filed in 2019, an increase of 55% from 55 in 2018, according to a report, Tech Company Securities Class Action Filings and Settlement, issued by San Francisco-based Cornerstone Research Inc. on Wednesday.
"Total applications for technology companies have increased from 28 applications in 2016," to a record 85 reported in 2019, the report said.
The report also stated, "While the full impact of the COVID-19 pandemic on filing activity and future settlement remains to be seen, there is potential for increased applications for securities class applications, including those against technical companies, based on the economic downturn and operational
However, the report said, the impact of the pandemic on technology companies may be less severe than its impact on the overall market.
While the S&P 500 decreased by 20% in the first quarter of the year, the report said, Dow lost The Jones US Technology Index lost 1
Cornerstone and Stanford Law School Securities Class Action Clearinghouse in Stanford, California, said in a report issued earlier this year that plaintiffs files d 428 new group security cases in federal courts and state courts in 2019, which was the most record and almost d ubbelt average 1997-2018. This compares with the 420 issued in 2018, according to the report.
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