New York (July 15, 2003) -- Contrary to some expectations, the rate of securities class action lawsuits - as well as the average value of litigation settlements - so far appears unaffected by either public indignation over the Enron corporate scandal or the passage of Sarbanes-Oxley.
From Sarbanes-Oxley’s passage in July 2002 until June 2003, securities class action suits were filed at an annual rate of 214, comparable to the average rate of 208 filings per year between 1996 and 2001, according to international economic consulting firm NERA . Their study, "Recent Trends In in Securities Class Action Litigation," looked at federal class action litigation filings, settlement values and dispositions between January 1991 and June 2003. Filing tallies for 2001 and 2002 excluded so-called "laddering" cases alleging unfair IPO allocation practices and analyst conflict-of-interest cases.
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