Report Shows Individual Securities Case Filings Rose Sharply in 2009

Representing Investors Nationwide

According to Advisen Ltd. Report Securities class action filings were flat, but regulator suits rose sharply.

The press release appears below:

Economic turmoil drove a surge in securities lawsuit filings in 2009, according to a new report from Advisen Ltd. The year saw securities lawsuit filings grow at a robust 13 percent rate to 910 suits, eclipsing an already-elevated 2008 at 804 suits. The number of securities class action suits filed was essentially unchanged, with 234 suits filed in 2009 compared to 239 the prior year, while the number of securities fraud suits filed by regulators grew sharply, with a 22 percent increase over 2008.

³Litigators and regulators stayed busy in 2009,² noted John W. Molka III, the author of the report. ³The first half of the year was dominated by credit crisis- and Madoff-related lawsuits. Those types of suits fell off sharply in the second half, but plaintiffs¹ attorneys had a backlog of other cases waiting to be filed.² Although securities class action filings were essentially flat as compared to 2008, they decreased as a percentage of all securities suit filed, coming in at about a quarter of the total. That represents a continuation of a downward trend that began in 2005, when securities class action suits represented about half of all securities suits filed.

³Securities class action suits filed in federal courts account for many of the largest settlements, but every year they represent a smaller percentage of the total number of securities suits filed,² explained Dave Bradford, Advisen¹s executive vice president. ³A growing threat to companies and their directors is escalating enforcement actions and lawsuits by regulators.

Also, breach of fiduciary duty suits and other securities suits filed in state courts are on the rise. ² Advisen¹s report, Securities Suits Abound in a Harsh 2009, also reviews trends in awards and settlements, and analyzes the factors likely to influence settlement values in the coming years. Sharply higher losses to shareholders in securities class action suits, as measured by Advisen¹s Market Cap Impact Metric , suggest that settlements may be larger for suits filed in 2009, but it is likely that a higher than average percentage of 2009 suits will be dismissed.

Click here for the full report.

A number of banks and brokerage firms have been targets of regulatory inquiries in cluding Regions Bank for their marketing and sale of the RMK Bond Funds; UBS for the sale of their proprietary Principal Protected Notes (PPNs), Partially Principal Protected Notes (PPPNs), Return Optimation Notes (RONs); OppenheimerFunds for the marketing and sale of the Champion Income Fund; Wachovia Bank for the sale of the Evergreen High Income Fund; and Regional firms for the sale of DBSI Notes and direct Investments and the subequent bankruptcy filings.

IF you have lost money related to these or any other security that is the subject of regulatory inquiry, please contact our office for a free case evaluation. Thank you.

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