Monday, August 07, 2006

Securities Litigation Continues Downward Trend

This recent study on class action securities litigation - "2006 Mid-Year Securities Fraud Class Action Filings Report" - from Stanford Law/Cornerstone Research shows that securities litigation continues to trend downwards with a 45% decline in the number of securities class actions filed during the first half of 2006 compared to the same period of the prior year.

The Study posits some reasons for this trend, including the dissipation of the ill effects from the boom and bust period of the late '90s, the cleansing effects of Sarbanes Oxley, and the absence of stock market volatility.

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