Federal securities class-action filings decline.

• Author: Ladd, Scott
• Position: SECURITIES LAW - Brief article

A study by Pricewaterhouse-Coopers LLP finds that the number of federal class action filings in securities dropped in the second quarter of 2010, compared to the same period the previous year.

During 2010, there was a 12-percent increase in filings from the first quarter to the second, from 33 to 37. If this rate continues, an estimated 140 federal securities class actions will be filed by the end of the year, as compared to 155 filings last year. If the numbers hold, it would constitute a 10-percent drop.

In other findings, financial crisis-related filings continue to decrease, from 47 percent in 2008 to 33 last year. Accounting-related cases during the first half of 2010 represented 36 percent of filings. Cases involving merger and acquisition allegations represented 17 percent of filings, while pharmaceutical/product efficacy cases...