The total value of securities class settlements last year was in line with previous years, after settling more than $ 1 billion is excluded, according to a report issued on Wednesday.
The total value of the 77 court-approved settlements doubled in 2020 to $ 4.2 billion in 2020 due to six mega-settlements of at least $ 100 million, according to the report by Cornerstone Research Inc. in San Francisco, Securities Class Action Settlements , 2020 Review and Analysis.
But when settlements of more than $ 1 billion are excluded, the total settlement dollars decreased by 4% in 2020 compared to 2019, after adjusting for inflation, the report said.
Laura E. Simmons, a senior advisor to Cornerstone Research and co-author of the report, said in a statement, "Any disruption of the COVID-1
"It will probably take at least a couple of years before we learn whether COVID-19-related allegations have affected other settlement trends.
Among other results, the median settlement in 2002 was $ 10.1 million, compared to $ 11.6 million in 2019, which was a decrease of 13% compared to the historically high level reported in 2019, according to the report. The median amount for the period 1996-2019 was $ 9 million. The figures were adjusted for inflation.
The report said that "the median settlement amount in 2019 was at a historically high level, mainly driven by a decrease in the number of small settlements.
" The reduced level of small settlements reversed in 2020, with over 30% of cases settling for amounts less than $ 5 million. "
The report also states that" several trends in external case allegations have been observed in cases, including allegations related to cyber security, cryptocurrency and special
It said that Cornerstone expects cases concerning these issues to be decided in the coming years .
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