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For the first time in several years, securities fraud cases declined in 2020, largely due to the pandemic.
1 However, we don’t expect this decrease to continue. Just three months into 2021, there are a number of issues trending in this practice area, including:
Securities litigation against non-U.S.-based issuers;
Securities and derivative litigation arising from SPACs and de-SPAC transactions;
Securities and derivative litigation arising from COVID-19; and
Derivative litigation raising issues relating to diversity.
Increase in Securities Fraud Class Actions Against Non-U.S. Issuers
As reported in Dechert’s Annual Survey, securities class actions filed against non-U.S. issuers actually increased in 2020—going from 64 filed in 2019 to 88 filed in 2020, an increase of 37.5%,