Your Company Has Been Sued for Securities Fraud—Now What?

According to the Stanford Law School/Cornerstone Research Securities Class Action Clearinghouse, each year since 2001, with just one exception (2006), investors have filed more than 150 securities fraud class actions in the federal courts. More than 400 cases were filed each year between 2017 and 2019, and just shy of 200 were filed in 2022. During that same time period, the median settlement of a securities fraud class action has ranged from $5.8 million to $12.1 million in 2018. 

Thus, while the likelihood of any particular public company being sued in securities-related litigation may be statistically low, the risk is not de minimis, and potential damages (or settlement amounts) are high. Given these risks, the volatility of financial markets, and most companies' desire to minimize the negative publicity associated with securities litigation, companies would be well served by having a list of action items in case they are sued. 

This White Paper identifies a nonexclusive list of some preliminary actions and highlights important issues that companies and counsel should consider at the outset of most securities cases.

Read the White Paper here.

Insights by Jones Day should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information purposes only and may not be quoted or referred to in any other publication or proceeding without the prior written consent of the Firm, to be given or withheld at our discretion. To request permission to reprint or reuse any of our Insights, please use our “Contact Us” form, which can be found on our website at This Insight is not intended to create, and neither publication nor receipt of it constitutes, an attorney-client relationship. The views set forth herein are the personal views of the authors and do not necessarily reflect those of the Firm.