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Study: Securities Class Actions Surge

Publication Date: 
January 07, 2009
Source: 
Daily Journal
Author: 
Gabe Friedman 

Professor Joseph A. Grundfest is quoted in the Daily Journal commenting on the Securities Class Action Clearinghouse report released on Tuesday that indicates that securities fraud class-action filings increased 19 percent in 2008:

Securities fraud class-action filings surged to the highest level in years at the beginning of 2008, but sagged as the year closed, according to a report released Tuesday.

The joint study conducted by Cornerstone Research and Stanford University Law School Class Action Clearinghouse found a total of 219 securities class actions filed through Dec. 15, 2008.

...

Joseph Grundfest, director of the Stanford University Law School Class Action Clearinghouse, suggests that plaintiff lawyers may have sued all their potential targets through the first half of the year.

"The fact that most of the lawsuits filed in 2008 were concentrated among the largest financial institutions may indicate a rational strategy by plaintiff law firms to initially focus on defendants with the deepest pockets," Grundfest states in the commentary section of the report.