Securities class-action lawsuits plummet in 2020 – report
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The number of securities class-action lawsuits filed in 2020 dropped significantly from the record-setting levels in 2019, according to a report released Wednesday by Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse.
Plaintiffs filed 334 securities class-action cases in federal and state courts in 2020, a 22% reduction from the 427 cases filed in 2019. It was the first time since 2016 that plaintiffs filed complaints against fewer than 400 issuers in a year, according to the report, Securities Class Action Filings 2020 Year in Review.
The number of core filings those not focused on mergers and acquisitions fell 12% in 2020 to 234. Mergers and acquisitions filings were down to 100 in 2020 from 160 in the year prior.