September 24, 2021

Volume XI, Number 267

Advertisement

September 24, 2021

Subscribe to Latest Legal News and Analysis

September 23, 2021

Subscribe to Latest Legal News and Analysis

September 22, 2021

Subscribe to Latest Legal News and Analysis

Core Federal Filings: An Excerpt from Securities Class Action Filings—2021 Midyear Assessment

Securities Class Action Filings—2021 Midyear Assessment

Executive Summary

Overall filing activity dropped considerably in the first half of 2021, falling to 112 filings from 150 filings in the second half of 2020. This decline was largely driven by a substantial reduction in the number of M&A class actions and federal and state 1933 Act filings, although core filings with Section 10(b) allegations were also down modestly.

Filings in the first half of 2021 were generally smaller, resulting in lower MDL and DDL indices. DDL fell 50% from $162 billion in 2020 H2 to $80 billion in 2021 H1. Similarly, MDL fell 64% from $991 billion in 2020 H2 to $361 billion in 2021 H1.

Special purpose acquisition company (SPAC) IPOs have continued to explode. Filings against SPAC-related entities increased sharply in the first half of 2021. There were also 10 filings related to COVID-19, largely concentrated in the first four months of the year.

Federal Filings Against Non-U.S. Issuers

This index tracks the number of core federal filings against companies headquartered outside the United States relative to total core federal filings.

The number of federal filings against non-U.S. issuers is on track to be less than half of 2020’s record high of 74.

While overall there were fewer core federal filings against foreign firms, 60% were against Asian firms.

Industry Comparison of Federal Filings

This analysis of core federal filings encompasses both the large-capitalization companies of the S&P 500 and smaller companies.

Filings in the financial sector fell to less than two-thirds of the 1997–2020 semiannual average.

Federal Filings by Circuit

  • Total MDL for Second Circuit filings fell from $385 billion to $92 billion in 2021 H1, a 77% decline. While the $385 billion MDL in 2020 H2 was abnormally high, the $92 billion 2021 H1 MDL was below the 1997–2020 semiannual average of $126 billion. (See Appendix 4)

Copyright ©2021 Cornerstone ResearchNational Law Review, Volume XI, Number 210
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Alexander “Sasha” Aganin, Complex financial issues, securities, bankruptcy, Cornerstone Research
Senior Vice President

Sasha Aganin heads Cornerstone Research’s financial institutions practice. Dr. Aganin specializes in addressing complex financial issues arising in litigation. He has worked extensively to lead the firm’s efforts in securities matters and bankruptcy disputes. In addition, he has contributed significantly in other areas involving financial institutions, such as antitrust matters related to financial markets and institutions. Many of his cases involve risk analysis and modeling. Dr. Aganin has assessed economic losses, loss causation, and valuation for companies and...

650.470.7195
Advertisement
Advertisement
Advertisement