A “wave” of COVID-19-related securities litigation is contributing to the already-unprecedented levels of securities class action litigation, according to a report in the D&O Diary.
In response the U.S. Chamber Institute for Legal Reform and the Chamber’s Center for Capital Markets Competitiveness filed a petition with the Securities Exchange Commission, urging them to exercise the authority given to them in the Private Securities Litigation Reform Act (PSLRA). A copy of the October 30 petition can be found here.
The petition notes the significant growth in the number of securities class action lawsuit filings in recent years, observing further that one of the factors in this growth has been the rise of event-driven litigation. Based on the growth of event-driven securities suit filings that the COVID-19 pandemic – an event of global and historic significance – has already engendered, this issue will “continue to cause significant securities litigation activity, including frivolous claims.”