ANALYSIS: Are SPACs Why Securities Litigation Is Way, Way Up?

Securities litigation cases, including enforcement actions filed by the Securities and Exchange Commission, are on the rise. There were 425 securities litigation cases filed in federal courts during the first two months of this year, representing a nearly 60% increase over the same period in 2020, according to Bloomberg Law’s Dockets data.

The graphic above illustrates the growth in filed cases beginning in December of last year through February 2021. Those are the first three months of consecutive increases since July–September 2018. The data also confirm an established pattern in the filing of securities enforcement cases. Each September, we ...