The New York Business Journal reported last week that a high share of 2013 securities class-action lawsuits were filed in the New York-based 2nd Circuit and the California-based 9th Circuit of the U.S. Court of Appeals.
However, the Journal also reported that the resulting loss of shareholder value remained below historical averages.
The news outlet reported that class action filings grew 9 percent, from 152 to 166, based entirely on a 10-case rise in the 2nd District and a 20-case increase in the 9th District. In other regions across the country, overall activity remained flat or below averages dating back to 1991.
“In the 2nd Circuit, headquartered in Lower Manhattan, the total “disclosure dollar loss” — the difference between a defendant firm’s market capitalization before the class period and after — stood at $31 billion, off the historical average of $43 billion,” the Journal reported.
The news outlet also reported that lawsuits “filed against companies listed on the New York Stock Exchange declined from 73 in 2012 to just 55 last year, while claims against NASDAQ-listed companies soared from 60 to 97.”
What is a Securities Class Action Lawsuit?
Securities class action lawsuits occur when an investor has purchased a stock or other security and its value goes down because the company or its management have given an erroneously positive picture of the company’s current or past finances, business prospects, expected business or financial results.
In securities cases, because a single investor may not be able to sue the company individually, multiple investors may be able to bring a case representing the interest of all investors.
If you are an investor and you have questions concerning your legal interests when it comes to securities litigation, please contact Gary S. Graifman, Esq., of Kantrowitz, Goldhamer & Graifman, P.C., at 1-(800) 711-5258. You can also send us an email or fill out the contact form on our website.
Kantrowitz, Goldhamer & Graifman, P.C. – Class Action Lawyers