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Report cites material uptick in securities class action litigation

Germane data relevant to class action litigation activity is always notable and of material interest in Connecticut and across the United States, given that it sheds light on alleged corporate malfeasance and the level of plaintiff filings in state and federal courts.

Here's the quick bottom line on what's currently going on in that realm nationally, as noted by researchers of a joint study effort authored by litigation consulting firm Cornerstone Research and an arm of the Stanford Law School, respectively: Increasingly more plaintiffs are reportedly concerned with company wrongdoing across a wide universe of business activities, and they are proactively seeking legal remedies to redress it.

In short: The volume of securities class action cases filed in federal courts during the first six months of this year has spiked relevant to the latter half of 2015.

And in a most discernible way.

In fact, the above-cited study reports that the jump has been a sizable 17%, with 119 new cases being filed between January and the end of June this year.

As for specifics, Cornerstone and Stanford state that truly large commercial enterprises -- S&P 500 companies -- are increasingly appearing as defendants in class action filings and that -- at least in the federal judicial realm -- merger/acquisition activity has "fueled the jump" in securities-related complaints.

And there is also evidence to suggest that plaintiffs are seeing state courts as friendlier venues than federal forums for bringing class actions. One lead researcher, who formerly served as the commissioner of the United States Securities and Exchange Commission, says that litigants "are using a range of jurisdictional maneuvers to try to steer an increasing number of cases away from the federal forum."

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