Securities Class Actions Drop 22% After Pandemic Roils Courts

Investors filed fewer than 400 class actions involving federal securities law for the first time since 2016, after a year that saw courts change their procedures to adapt to the coronavirus pandemic, a Wednesday report says.

Securities class action filings are down 22% from a record high in 2019, according to the report from Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse. NERA Economic Consulting identified a similar decrease in its report, released Jan. 25.

Filings fell to 334 in 2020 from 427 in 2019, the Cornerstone report said, confirming trends the group spotted during the ...