Cornerstone Research has developed a database of securities class action settlements for cases filed after the passage of the Private Securities Litigation Reform Act (Reform Act). This database includes over 60 variables and provides the foundation for our research on securities case settlements as highlighted here and at the Securities Class Action Clearinghouse. Our current research analyzes settlements reported through December 2009. A list of the cases comprising our database of settlements through 2009 is available here.
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Settlement Prediction Model
Our clients are often interested in obtaining estimates of expected settlement amounts for their securities cases. Accordingly, as part of our ongoing research, we have analyzed the factors affecting the settlement outcomes of post-Reform Act lawsuits. We have developed a prediction model to estimate expected settlement amounts for post-Reform Act cases, based on significant factors. The model explains over 65 percent of the variation in settlements amounts and includes estimated “plaintiff-style” damages, the nature of the case allegations, the defendants involved, and characteristics of the defendant firms. Settlement estimates based on this model are available to Cornerstone Research clients. For further information, please contact Ellen Ryan at eryan@cornerstone.com or (617) 927-3000.
Current Research
Our most recent report, Securities Class Action Settlements: 2009 Review and Analysis, analyzes post-Reform Act settlements through December 2009. We focus on a sample of settlements approved in 2009, with comparisons to post-Reform Act settlements in prior years. This report also analyzes post-Reform Act settlements to date as a group, including annual trends and data on the size of settlements both in dollars and as a percentage of estimated “plaintiff-style” damages. We analyze settlements by the nature of the allegations involved, including the presence of accounting allegations, Section 11 and 12(a)(2) claims, and insider trading allegations, as well as by the presence of third party defendants. This report includes settlement statistics by court circuit and several industry sectors. In addition to presenting descriptive statistics, this report describes the results of our study of the determinants of settlement outcomes using regression analysis.
Report Archive
Securities Class Action Settlements Review and Analysis