As part of Corporate Disputes’ Expert Forum on Securities Litigation, Matt Schwartz reflected on 2023 securities litigation trends.
He noted that the number of U.S. securities class action filings was fairly consistent in 2023 compared to the year prior, though potential damages for these cases declined, “likely reflecting overall stock market performance.” Matt also pointed out the significant decline in complaints concerning SPAC and other M&A transactions and IPOs, consistent with market shifts. Conversely, the number of securities actions concerning cryptocurrency, cannabis and bank failures increased.
Two major developments this year will require close attention by issuers, he said. First, the SEC’s new rules concerning cybersecurity will take effect in December and require disclosures around cyber attacks and responses. Second, the SEC, state regulators and civil litigants increased scrutiny aimed at issuers’ disclosures concerning ESG.
Matt also expects more blockbuster securities decisions from the federal courts in early 2024.
Read: “Expert Forum: Securities Litigation”.
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