U.S. Securities Class-Action Settlements Rebound, May Not Last
Professor Joseph Grundfest weighs in on the impact a U.S. Supreme Court ruling limiting investors' ability to band together will have on securities class-action settlements in Reuters.
The number and size of U.S. securities class-action settlements rose in 2013, a new study shows, but the gains may not last if the U.S. Supreme Court limits investors' ability to band together to bring lawsuits.
Sixty-seven settlements worth $4.77 billion, the highest dollar amount in six years, won court approval in 2013, up from 57 settlements worth $3.26 billion a year earlier, according to the study released on Thursday by Cornerstone Research.
"If the ruling in Halliburton severely limits investors' ability to get large-scale class actions certified, the future of such cases is up in the air," Joseph Grundfest, a Stanford Law School professor who works with Cornerstone, said in a statement.
Grundfest is also a former commissioner of the U.S. Securities and Exchange Commission.