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"It was evident from an early point in the year that 2013 was unlikely to provide many significant trends in the securities litigation landscape," said
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With just 69 settlements in 2013 for a second consecutive year, the number of settlements fell well below the five year average of 81. Despite the number of settlements in 2013 remaining consistent with the prior year, the average settlement value of
"A potential explanation for the increased average settlement value can be found in the financial crises of the past six years, as the cases that followed the sub-prime mortgage and credit crisis have continued to dominate the settlement landscape," commented Keenan.
Other notable findings in the 2013 Study include:
- Health industry continues to see more securities litigation – Similar to last year, the health industry continued to see more securities litigation than any other industry in 2013. In both years, 23 percent of cases were brought against companies operating in this sector.
- Canadian companies attract greater scrutiny than other foreign issuers – Nine cases were filed in 2013 against Canadian companies, an increase from seven in 2012 and representing 29 percent of all cases filed against foreign issuers in 2013.
- M&A related cases remain a feature of securities litigation – The 15 M&A cases filed in 2013 represented nine percent of total cases filed – a decrease from 16 cases in 2012 and 44 cases in 2011. Nearly all of these M&A cases involved allegations that the proposed purchase price did not appropriately value the company and, as a consequence, shareholders would not be adequately compensated.
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