Securities class actions trending downward: Woodruff Sawyer

A downward trend in the number of securities class actions filed against public companies continued in the first half and, if it holds, means litigation in this area will be down for the third straight year, says a report issued Wednesday.

“However, the possibility of a recession looms and could impact the rate of filings,” says Woodruff Sawyer & Co.’s securities class actions mid-year report.

“In our experience, economic downturn leads to disappointed shareholders; litigation may ensue.”

The report says plaintiffs filed 85 suits in the first half, and at the current rate, there will be 170 filed by year end, or 7% fewer than the 182 cases filed in 2021. There were 210 filed in 2020 and 268 in 2019.

Biotech and technology companies were the most frequent class-action targets, according to the report.