Skip to main content
MENU
Subscribe
  • Subscribe
  • Account
  • LOGIN
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE Act 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2022 Innovation Investing Conference
    • 2022 Defined Contribution East Conference
    • 2022 ESG Investing Conference
    • 2022 DC Investment Lineup Conference
    • 2022 Alternatives Investing Conference
Breadcrumb
  1. Home
  2. COURTS
March 15, 2017 01:00 AM

Securities class-action settlements, payouts jump in 2016 — report

Meaghan Offerman
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Getty Images

    The number of court-approved federal securities class-action settlements rose to 85 in 2016, the highest level since 2010 and up from 80 in 2015, said a report released Wednesday by Cornerstone Research.

    The record number of 270 case filings in 2016 contributed to the increase. That, combined with four consecutive year-over-year increases in the number of case filings, could drive up the number of settlements in future years, Cornerstone said.

    The report also found that the percentage of settlements with public pension funds as the lead plaintiffs rose to 41% in 2016, up from 39% in 2015.

    Regarding settlement amounts, the average settlement in 2016 was $70.5 million in 2016, up from $38.4 million in 2015, driven in part by 10 “mega settlements” in 2016 of more than $100 million, the highest number of mega settlements in the last 10 years, and accounting for 81% of all settlement dollars in 2016, Cornerstone said.

    In total, courts approved nearly $6 billion in settlements in 2016, the second highest amount in the last 10 years, and up from $3.1 billion in 2015.

    “While the spike in total settlement value in 2016 was largely driven by growth in very large cases, an increase in the median settlement amount also indicates a shift for more typical securities class actions,” said Laura E. Simmons, senior adviser at Cornerstone Research and co-author of the report, in a news release. “Overall, defendant firms in 2016 were substantially larger compared to 2015, and we know from our research that larger firms are generally associated with higher settlement amounts.”

    The median settlement amount in 2016 was $8.6 million, up from $6.1 million in 2015

    Among the report’s other findings:



    • Average estimated damages rose to $4.8 billion in 2016, the second highest level in 10 years and up from $4.4 billion in 2015. Median settlements as a percentage of estimated damages was 2.5% in 2016, the highest percentage since 2011 and up from 1.8% in 2015.

    • The median disclosure dollar loss in 2016 was $135 million, up from $90 million in 2015.

    • Two of the 10 mega settlements in 2016 exceeded $1 billion, making it the first year since 2006 with more than one settlement of that size.

    • 2016 had the highest percentage of cases settling within two years of being filed since 2006.

    The full report is available Cornerstone’s website.

    Related Articles
    Pension funds' Volkswagen lawsuit may proceed in U.S., court rules
    CalPERS' Lehman case gets review as Supreme Court considers lawsuit deadlines
    Federal securities class-action suits jump to 20-year high in 2016 — report
    Global investors join Supreme Court case on statute of limitations for class ac…
    Harman International to pay $28 million to settle pension fund-led lawsuit
    Recommended for You
    ONLINE_190109864_AR_0_SLHVICTSVYPI.jpg
    Former Molina Healthcare employees sue NFP Retirement alleging ERISA violations
    SEClogobig-main.jpg
    Appeals court rules against SEC on administrative law judge proceeding
    ONLINE_180709926_AR_0_SPVGDZVTUNPE.jpg
    Barnabas Health settles ERISA complaint for $1.75 million
    Alternatives: Investing Across the Spectrum
    Sponsored Content: Alternatives: Investing Across the Spectrum

    Reader Poll

    May 23, 2022
    SEE MORE POLLS >
    Sponsored
    White Papers
    Crossroads: Politics, Inflation, & Bonds
    Credit Indices: Closing the Fixed Income Evolutionary Gap
    Forever in Style: Benchmarking with the Morningstar® Broad Style Indexes℠
    Q2 2022 Credit Outlook: Carry On
    Leverage does not equal risk
    Is there a mid-cap gap in your DC plan?
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    May 23, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE Act 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2022 Innovation Investing Conference
      • 2022 Defined Contribution East Conference
      • 2022 ESG Investing Conference
      • 2022 DC Investment Lineup Conference
      • 2022 Alternatives Investing Conference