US SECURITIES CLASS ACTIONS
CD: How would you describe the level of securities class action filings in the US over the past 12 to 18 months? Are any specific states witnessing greater numbers of these cases?
Weiner: I have noticed a significant uptick in the number of securities class actions being filed. In light of recent court decisions, you now see securities actions in both state and federal courts. And, there have been a multiplicity of actions running on parallel tracks. From personal observation and experience, the largest numbers tend to be in California and New York. The increase in securities class actions may be associated with increased M&A and IPO activity in the marketplace, which is expected to continue for at least the next year.
Morrison: We continue to see a robust number of new filings of federal securities class actions. After seeing 431 new class actions filed in both 2017 and 2018, plaintiffs are on pace to file 436 such actions in 2019. In the state courts, we have seen an uptick in class action filings asserting claims under the Securities Act of 1933 since the Supreme Court’s decision last year in Cyan v. Beaver County Employees Retirement Fund, which held that such claims are not removable to federal court. As has been the case for many years, Northern California remains a particularly popular forum for ‘33 Act class actions.
Oct-Dec 2019 issue
Baker & McKenzie LLP
Debevoise & Plimpton LL
Skadden, Arps, Slate, Meagher & Flom LLP