There were more securities class action lawsuits last year than in any year since 2001, and the litigation rate of securities lawsuits was at an all-time high, reports D&O Diary.
The litigation rate, or the “number of lawsuits relative to the number of public companies,” was at an all-time high. According to the report, “the chances of a U.S.-listed company being hit with a traditional securities lawsuit was about 71% higher during 2017 than the long-term historical average would otherwise suggest.”
A total of 415 securities class actions were filed in 2017, which is 53 percent higher than the amount filed in 2016. Last year’s total was 120 percent higher than the annual average of 1996-2015.