Top 100 List Includes Salix Pharmaceuticals and BP plc 2017 Settlements
ROCKVILLE, M.D. (February 6, 2018) – Of the 100 largest U.S. class action settlements approved since passage of the Private Securities Litigation Reform Act of 1995, just two were approved in 2017, according to a new report released today by Securities Class Action Services LLC, a subsidiary of Institutional Shareholder Services.
For calendar year 2017, ISS Securities Class Action Services identified 162 approved securities class action settlements, which collectively delivered $2.1 billion in settlement funds for distribution. While the volume of approved settlements worth greater than $100 million each was low, the number of new cases filed in 2017 was significantly higher than the previous year. Of the 162 settlements in 2017, approximately 46 percent were approved during the first half of the year with monetary disbursements amounting to approximately $666 million.
BP plc. received approval for a $175 million settlement, resulting in the highest valued accord during the first half of 2017 and inclusion in the Top 100. The second half of 2017 saw approval of 54 percent of the 2017 settlements, valued collectively at $1.4 billion. Salix Pharmaceuticals, the largest settlement approved for 2017, secured an aggregate of $210 million on behalf of plaintiffs. The BP and Salix matters were heard in U.S. Federal Courts and involved alleged violations of Rule 10b-5 of the Securities and Exchange Act of 1934, which covers employment of manipulative and deceptive practices.
“Underscoring the year-to-year ebb and flow in the value of U.S. class action settlements, a sizeable $3.5 billion in prospective settlement funds has thus far been announced in 2018 and awaits court approval,” said Jeff Lubitz, Head of ISS Securities Class Action Services. “Notably, one settlement announced this year would rank within the top five of all time, and so shareholders should keep a close eye on the ISS Securities Class Action Services pipeline with 2018 shaping up to be a banner year for settlements.”
The Top 100 U.S. Class Action Settlements Annual report identifies the largest securities class action settlements filed after the passage of the Private Securities Litigation Reform Act of 1995, ranked by total value of the settlement fund. Charts and graphs break down the data by settlements represented by institutional lead plaintiff, institutional lead plaintiff participation, most frequent lead counsel, lead counsel participation, most frequent claims administrator, claims administrator participation, restatements, and the number of settlements that were added to ISS Securities Class Action Services’ top 50 SEC disgorgements.
To download a copy of the report and for further information on ISS’ Securities Class Action Services division, please visit us at: http://www.issgovernance.com/class-actions.
Editors: Please note that any citation of statistics contained within the report should be attributed, in full, to “ISS Securities Class Action Services.”
