A recently released study, Predicting Securities Litigation, found that securities class action filings rose 43% in 2007, and predicted another year of increased litigation in 2008.
The study found that small and mid-cap companies are increasingly subjected to such lawsuits, and found that a strong indicator of potential securities litigation is whether CEO compensation practices are poorly-aligned with shareholder interests.
2008 is already off to a strong start for securities filings, with a reported minimum of 24 securities class actions filed in January.
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