The Stanford Securities Class Action Clearinghouse, which tracks - well, I guess it would be obvious what it tracks - has released its 2006 mid-year report detailing happenings in the securities litigation world for the last six months (Press release - PDF, Full report - PDF).

Amongst the big news coming out of the report is that the first half of 2006 saw a decline in the filing of new securities cases, the lowest level for any six month period since 1996. "Aha!" you say, "but obviously the first half of 2006 is before options scandal broke open and that has fed a great many new cases."

Well, not exactly. As detailed in the report and displayed by Bruce Carton over at Securities Litigation Watch, there have been only eight stock options class actions filed. Not exactly a mega-number, but it is early days yet and new companies will likely be joining that list. Thus far though, the SSCC says the impact has been less that one might expect based on the wall-to-wall media coverage.

Year-to-year the numbers shake out like this: 111 new securities cases were filed in the first half of 2005. In the first half of 2006, the number of two cases was 61. Annualizing that number (which, of course is only an estimate) would predict 123 cases on the year for 2006, which would be the lowest number since 1996 and represent a 31 percent decline from 2005's 179 cases.

Still reading the the report so there may be other tidbits. Read it for yourself, right here. The Dialy Caveat found Exhibit 9 particularly interesting, which breaks down the 61 cases from 2006 based on the type of allegations. Just in case your curious.

-- MDT

Labels: Standford Securities Class Action Clearing House