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Mega Filings: An Excerpt

​Mega DDL filings have a DDL of at least $5 billion. Mega MDL filings have an MDL of at least $10 billion. For both DDL and MDL measures,  the number of tech company mega filings was higher in 2018–2019 than in 2015–2017.

There were four mega DDL filings involving tech companies in 2019—a 33 percent decrease from 2018.

There were eight mega MDL filings involving tech companies in 2019, up from six the previous year.

Mega filings involving tech companies have been concentrated in federal courts rather than state courts. For the past five years, all mega DDL filings involving tech companies were in federal courts. This filing concentration in federal courts began as early as 2002 according to the data.

Since 2017, all mega MDL filings involving tech companies have been federal filings.

Mega DDL and MDL filings for tech companies have been heavily concentrated in federal courts.

There were no mega filings involving tech companies in Q1 2020 as measured by DDL.

In Q1 2020, there was only one tech company MDL mega filing: Electrical Workers Pension Fund, Local 103, I.B.E.W. et al. v. HP Inc. et al.

Figure 5: Number of Tech Company Mega Disclosure Dollar Loss (DDL) and Mega Maximum Dollar Loss (MDL) Filings

 

2015

2016

2017

2018

2019

Q1 2020

Mega Disclosure Dollar Loss (DDL)

Federal Filings

2

1

1

6

4

-

State Filings

-

-

-

-

-

-

Total

2

1

1

6

4

-

Mega Maximum Dollar Loss (MDL)

Federal Filings

3

3

1

6

8

1

State Filings

1

1

-

-

-

-

Total

4

4

1

6

8

1

                 

 

Source: Bloomberg BICS Manual; Cornerstone Research and Stanford Law School Securities Class Action Clearinghouse

Note: Dataset includes state and federal core filings from 2015 through Q1 2020. Tech companies are defined as those in the Computers, Internet, Semiconductors, Software, and Telecommunications subsectors according to the Bloomberg Industry Classification Systems (BICS).

Read more about Tech Company Securities Class Action Filings and Settlements--2015-Q1 2020 Review and Analysis.

Read Tech Company Securities Class Action Filings and Settlements—2015–Q1 2020 Review and Analysis

Read An Excerpt from Tech Company Securities Class Action Filings and Settlements—2015–Q1 2020 Review and Analysis: Number of Federal and State Filings

Copyright ©2020 Cornerstone ResearchNational Law Review, Volume X, Number 207

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About this Author

Ravi Sinha Securities and Financial Analyst Cornerstone
Vice President

Ravi Sinha has more than ten years of experience working with clients and experts to address complex financial and valuation issues. He has analyzed market efficiency, class certification, valuation, and aggregate damages across a variety of matters involving debt, equity, and derivative securities. Mr. Sinha has worked on a variety of merger and acquisition matters. He also has experience in valuing intangible assets such as patents and trademarks. Mr. Sinha is experienced in all phases of litigation, including deposition, mediation, and trial. He has managed large case teams and has...

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