According to commercial insurance consulting firm Advisen, 169 securities lawsuits were filed during 2009’s third quarter-an 11% increase from the 152 complaints that were filed during the previous quarter. 249 securities lawsuits were filed in the 1st quarter.
The most common kind of securities lawsuit filed this past quarter was securities fraud lawsuits that were brought by law enforcement agencies and regulators. 70 securities fraud complaints and 55 securities class actions were filed during 3Q. 50 securities fraud complaints and 38 cases were filed in the 2Q.
Advisen Executive Vice president Dave Bradford says the percentage of securities fraud lawsuits is expected to grow now that the Securities and Exchange Commission appears to be increasing its securities fraud enforcement initiatives under President Barack Obama. The SEC has been attempting to recoup from its failure to detect the $50 billion Ponzi scam that Bernard Madoff ran for years.
One reason for the decline in securities lawsuits during the 3rd quarter may be due to a drop in credit crisis- and Madoff-linked lawsuits. Only 6 securities cases related to Madoff were filed in 3Q-compare that to the 54 lawsuits filed during 1Q and the 17 complaints submitted in 2Q. Since December 2008, at least 109 Madoff-related securities lawsuits have been filed.
Advisen reports that some 335 credit-crisis securities lawsuits have been filed. 46 complaints were filed in the 1Q, 24 in 2Q and 9 in 3Q.
During the 3rd quarter, 63 securities cases were awarded or settled. The average award or settlement was $11.6 million.
Securities Fraud Lawsuits
To increase your chances of recouping your investment, it is important that you speak with an experienced securities fraud law firm about your case.
Related Web Resources:
Securities lawsuits increase in third quarter: Advisen, Business Insurance, October 14, 2009
Feds say Bernard Madoff’s $50 billion Ponzi scheme was worst ever, NY Daily News, December 13, 2008