News & Events

News & Events

8.24.2015

The Future of Securities Class Action Litigation

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Lane Powell Shareholder Doug Greene authored an August 19 Law360 article titled “The Future of Securities Class Action Litigation.” In the article, Greene discussed significant changes in the culture of securities litigation that portend a paradigm shift.

Over the past few years, smaller plaintiffs firms have initiated more securities class actions on behalf of individual, retail investors, largely against smaller companies that have suffered what I call “lawsuit blueprint” problems such as auditor resignations and short-seller reports. This trend — which has now become ingrained into the securities litigation culture — will significantly influence the way securities cases are defended and by whom, and change the way that D&O insurance coverage and claims need to be handled.