Plaintiffs Attorneys Expect 2023 to Be Record-Setting Year for Securities Litigation Results – The National Law Journal
February 10, 2023
Crypto, Big Tech and the threat of a commercial real estate bubble are some of the areas plaintiffs attorneys are closely watching as targets of potential securities litigation this year.
Securities litigation filings may have settled in at a “baseline” of 200 to 225 cases per year after a two-year deviation in 2018-2019 to roughly twice that caseload due to issues emanating from SPACs, but settlement values have skyrocketed.
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The crypto conundrum: As the caseload of SPAC filings will drop off, “cryptocurrency may replace it,” Cohen Milstein Sellers & Toll partner Julie Goldsmith said. However it remains unclear “how it will play out for securities fraud litigation more broadly, since larger institutional clients tend not to hold cryptocurrencies.” The crypto space generally “should lead to enormous settlements, but for the most part the money just doesn’t exist, it simply evaporated,” Reiser said.