The Stanford Securities Class Action Clearinghouse and Cornerstone Research have released their 2006 year in review. Most anyone reading here is probably already familiar with the group's work, but if not, here's the nugget: they track the prosecution, defense, and settlement of federal class action securities fraud litigation.

So, how did the industry fair in 2006? According to the SSCAC, securities suits have fallen to an all time low (well, ok, they are one suit off of the 1996 pace) since the adoption of the Public Securities Litigation Reform Act was adopted in 1995. The SSCAC attributes this drop to a combination of strong Federal enforcement and a relatively stable stock market. You can read the full report here (PDF).

Check the tagged posts below to track back on the SSCAC's recent reports (as well as rebuttals), or just check out their website, where you'll find all manner of helpful tools for the data junkie.

On a potentially better note for plaintiff firms and their clients, a recent report from NERA Economic Consulting found that that class action settlements paid by corporations to shareholder plaintiffs rose by 37% in 2006. NERA also tracked the decline in securities class actions and it may be interesting to compare their numbers.

-- MDT

Labels: class action, securites, Stanford Securities Class Action Clearing House