2016: a record year
The year 2016 broke records in Securities Class Actions
According to a report prepared by Stanford University and Cornerstone Research, 2016 was a record year from different perspectives regarding Securities Class Actions.
During 2016, a total of 270 new Securities Class Action cases were registered before federal courts in the US, compared to the average of 188 annual cases registered in the period between 1997 and 2015.
The maximum potential loss was estimated at 823,000 million dollars, which is 38% higher than the historical average.
Alleged losses were close to 107,000 million dollars, slightly lower than the historical average of 120,000 million.
Listed companies subject to lawsuit
Another factor for which 2016 can be considered a record year is the number of companies listed in the US that have been sued.
In 2016, 3.9% of the companies listed on the different North American markets were sued in the traditional Securities Class Action.
The historical average was 2.8%.
Basis of the claims
Of the 270 lawsuits, at least 80 are based on possible breaches related to mergers and acquisitions (M&A) that caused damage to shareholders.
Similarly, 2016 was a particularly critical year for European companies whose securities are listed on North American markets.
Do you want more information?
The Funds that have maintained positions in the American market can obtain indemnities derived from other Securities Class Actions that still admit claims.
As of April 2017, there were 228 Securities Class Actions open for claims.
If you want more information, please contact us.