On March 24, 2010, Cornerstone Research released its annual study of Securities Class Action Settlements. The report written by Ellen M. Ryan and Laura E. Simmons can be found at http://www.cornerstone.com.
Key Findings: The value and number of settlements increased in 2009 compared to 2008. In 2009, there were 103 court approved settlements for an average settlement amount of $37 million compared to 97 settlements for an average settlement amount of $28 million in 2008. The median settlement in 2009 was $8 million, unchanged from 2008. Almost 60% of post reform (1996 – 2009) act cases have settled for less than $10 million; 80% settled for less than $25 million.
Fun Fact: securities fraud cases typically settle three to five years after the first complaint is filed.