U.S. securities litigation filings surges in 2010 Q2: Advisen

The U.S. government investigation of Goldman Sachs and the Deepwater Horizon oil spill may have sparked a surge in securities litigation in 2010 Q2, Advisen reports.
In its quarterly report, Advisen noted the number of securities lawsuits filed in 2010 Q2 was nearly 30% higher than in 2010 Q1, and 19% higher than in 2009 Q2.
New securities class action filings were 36% above the 2010 Q1 pace and 14% higher than in 2009 Q2.
“The heightened activity was due in large measure to suits sparked by highly visible events such as the government investigation of Goldman Sachs and the Deepwater Horizon oil spill,” the report said.
Deepwater Horizon-related claims drove an 82% increase in new filings against energy companies compared to the prior quarter.
The average settlement through the first half of 2010 – for all categories of securities suits, and including proposed and tentative settlements – fell when compared to 2009 from $29.6 million to $18.9 million, Advisen reported.
But the average securities class action settlement increased materially from $10.4 million to $49.6 million.