Cornerstone Research always puts out great data and this report on Securities Class Action Filings for the first half of 2018 is no exception. I recommend you check out the full report which you can find here.
These visuals really speak for themselves but the big takeaway is that if you are publicly traded company the chances of being subject to a Securities Filing are rising. In 2017, 8.4% of exchange listed companies were subject to a filing and in 2018 it is projected to be 8.5%.
If you are a member of the S&P 500 the chances of a filing are even higher at 9.6%.
Breaking this down even further, the industry you are in can change the odds dramatically as the chart below demonstrates.
The clients I work with are in the Life Science and Healthcare space and this is how filings breakdown in that group.
I believe companies need to believe a Securities Class Action filing is inevitable and should prepare accordingly. Of course, one way to prepare is buying having a broad Directors & Officers Liability in place, but risk prevention is even more important.
Once again I recommend you check out the full report from Cornerstone Research which you can find here.