Advisen wrote a report that examines all sources of securities-related suits that impact the underwriting and placement of management liability insurance other than ERISA liability suits. In addition to securities class action suits, the report encompasses a much broader set of suits, including securities fraud, breach of fiduciary duties, derivative actions, collective actions, and Ponzi scheme cases.
The free, 8-page paper is sponsored by Allianz.
What are the latest trends in securities-related suits? Did the number of new securities and business litigation filings and enforcement actions continue the downward trend seen in previous quarters? How does Q3 compare with previous quarters in terms of settlement count and average settlement value? Which sectors saw the most number of new securities litigation and enforcement actions?
This report offers interesting data on securities-related lawsuits filed in the third quarter of 2016. It looks into frequency and severity of securities suits, as well as information on emerging trends on securities litigation.
The paper also discusses the quarter’s largest settlements. It notes, however, that D&O insurance recoveries often are not a matter of public record, so the impact of these and other large cases on the D&O market is not readily apparent from public sources.
The largest settlement in the third quarter was a capital regulatory action paid by State Street Bank and Trust Company for $382.4 million. The global settlement was for misleading mutual funds and other custody clients by applying hidden markups to foreign currency exchange rates.