Law360 (October 24, 2019, 4:17 PM EDT) --

Nessim Mezrahi

The class period interval in securities class actions that allege violations of the federal securities laws under Section 10(b) and 20(a) of the Securities Exchange Act of 1934 is the second most fundamental determinant of the magnitude of potential aggregate — or classwide — damages.

Undoubtedly, the first is the number of shares of common stock sold by participants in the market in response to an alleged corrective disclosure that is alleged to be related to a specific misstatement or omission disseminated by directors and officers.

The length of the class period not only affects the magnitude of potential aggregate damages, but is also a key factor affecting the selection of the proposed lead plaintiff that may represent a purported class of defrauded shareholders.

Read more at: https://www.law360.com/articles/1212353

BETHESDA, Md., Oct. 10, 2019 /PRNewswire/ -- Aggregate exposure of U.S. public corporations to securities class action (SCA) lawsuits that allege violations of the federal securities laws under Section 10(b) and 20(a) of the Exchange Act amounted to $68.4 billion during 3Q of 2019. Cumulative SCA Exchange Act exposure for 2019 amounts to $270.1 billion. According to a report released today by SAR, the Rule 10b-5 litigation rate against U.S. corporations listed on U.S. exchanges has remained steady throughout 2019. Continue Reading

43 U.S. corporations were sued for alleged violations of the federal securities laws under Section 10(b) and 20(a) of the Securities Exchange Act of 1934 during 3Q’19.ii SCA litigation exposure for directors and officers of U.S. corporations to claims that allege violations of Rule 10b-5 under the Exchange Act amounts to $68.4 billion.iii Approximately $1.7 billion of market capitalization declines that have been claimed as investor losses by a proposed class of common stock shareholders exhibit an absence of stock price impact. Continue Reading