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Securities Settlements Reach Record High in 2004

By ALM Staff | Law Journal Newsletters |
March 29, 2005

Settlement amounts in securities class actions reached a record high of $5.5 billion in 2004, according to a new national study conducted by Cornerstone Research that compares settlements of cases filed since the passage of the Private Securities Litigation Reform Act in 1995.

The value of securities settlements in 2004 was up a staggering 162% over those in 2003. Even excluding the $2.6 billion partial settlement of the WorldCom matter, the increase to 2.9 billion in 2004 is dramatic given that $2.1 billion and $2.6 billion in settlements were recorded in 2003 and 2002, respectively. The previous high in securities class actions settlements was in 2000, with $4.5 billion.

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