Pensions and Investments quotes Professor Joseph A. Grundfest on the nature of the drop in securities class actions that has been reported by Stanford Law School's Secuirities Class Action Clearinghouse:

Increased enforcement activity by the SEC and the Department of Justice and "a heightened awareness among corporate insiders may have led to a shift in the incidence of securities fraud litigation," Joseph Grundfest, Stanford Law School professor and director of the clearinghouse, said in a statement about the report.

"We’ve now had two years worth of extremely low filing activity," Mr. Grundfest said in the statement. "This starting to look like a permanent shift, not a transitory phenomenon."