Subprime Mess Drives Up Securities Suits: Report

Law360 (July 30, 2008, 12:00 AM EDT) -- The subprime mortgage crisis and accompanying wider credit crunch has spurred a jump in securities lawsuits as investors seek to recoup losses from the stock markets' wild swings, but that's not the whole story, according to a new report released Tuesday night.

“Since June 2007, standard filings — which exclude auction rate securities, subprime-related and options backdating cases — have exceeded the levels of 2006 and the first half of 2007,” the report from NERA Economic Consulting said.

Market volatility, including a growing number of instances where companies lose 20% or more of their stock value in one day, and steeper...

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