US class-action securities lawsuits rose 39% in 2009
Settlements rose 39% in 2009, according to a study by Stanford Law School and Cornerstone Research, less than feared by many US D&O insurers.
The report noted the amounts could rise further as cases stemming from the financial crisis work their way through the courts.
There were 103 settlements totaling $3.83bn last year, up from 97 settlements totaling $2.75bn in 2008.
Joseph Grundfest, director of Stanford Law School's Securities Class Action Clearinghouse, said recoveries tended to be higher when large public pension funds led lawsuits, the US regulator the SEC pursued related civil charges, or accounting violations were alleged.
Despite fear of an increase in actions stemming from the financial crisis, to the relief of financial lines and D&O (re)insurers last year's settlements were well below record $18.3bn in 2006 which included $7.2bn over Enron.
This story was originally published by Reinsurance
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