According to Gibson Dunn’s just released 2012 Year-End Securities Litigation Update, 2012 proved to be a mixed year for defendants in securities litigation, with several open questions and rare causes for optimism. The raw statistics show a steady stream of new filings, increasing median settlement amounts, and relatively low dismissal rates for existing cases. The extensive report covers filing and settlement trends, Supreme Court developments, M&A litigation, life after Morrison and Janus and much more. The following is an excerpt:
The Supreme Court will decide an important case this coming term on the issue of class certification in securities class actions, while another important case on standing awaits the Court’s decision on a pending petition for certiorari. In the appellate courts, a number of trial court decisions dismissing class action suits were affirmed, but district courts continue to issue conflicting rulings on critical disclosure issues, including the application of the SEC’s Regulation S-K to private class actions-where several courts have allowed class claims to proceed on the basis of alleged failure to disclose “known trends.”
Trial courts are issuing divergent opinions on the application of the Supreme Court’s 2010 decision in Morrison v. Australia National Bank to claims involving the extraterritorial reach of the federal securities laws. District courts also are struggling to define who can be sued for primary liability for “making” an allegedly false statement, following the Supreme Court’s 2011 ruling in Janus Capital Group Inc. v. First Derivative Traders. We discuss each of these trends below. Finally, we summarize several notable decisions arising in the world of M&A litigation, an area of securities litigation that has shown explosive growth over the last few years.
Click here for the complete Gibson Dunn 2012 Year-End Securities Litigation Update.