Thursday, April 06, 2006

Spring Cleaning

Some may chalk it up to spring cleaning by the judiciary resulting in a spate of dismissals clustered during the same period. Others may suggest that defendants were simply tired of plaintiffs having all the fun with press releases.

In either event, in what I perceive to be a trend, there has been a recent avalanche of press releases from companies announcing the dismissal of the putative securities fraud class actions filed against them.

During the past two weeks alone, I have noticed the following half dozen announcements from issuers:

3/30 - Court Dismisses Purported Securities Class Action Lawsuits Against Belo, Individuals

3/31 - Career Education Corporation Announces Favorable Ruling in Securities Class Action Litigation

3/31 - Court Dismisses Class Action Securities Litigation Against Administaff

4/1 - Class Action Against Nokia Dismissed in its Entirety

4/3 - Judge dismisses suit against Teco

4/4 - Stonepath Granted Motion to Dismiss in Class Action Lawsuit

What I have not seen, yet, is an avalanche of announcements (like this one from Cooley Godward) from law firms that have successfully defended their clients in these cases.

ADDITION - The PSLRA Nugget has a post on the underlying decision in the Belo Corp. litigation.

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