During the first half of 2008 securities class action filings continued the rebound that started in the second half of 2007, following two years of lower activity. According to a report released today by Cornerstone Research in cooperation with Stanford Law Schools Securities Class Action Clearinghouse, there were 110 filings between January 1 and June 30, 2008, suggesting as many as 220 filings by the end of the year.

The recent high level of filings coincided with a marked increase in stock market volatility. Filings jumped from 119 in the twelve months ending June 2007 to 217 over the next twelve months, and stock market volatility doubled over the same period. This level of litigation activity exceeded the annual average for the eleven years between January 1997 and December 2007. About half of the filings in the first half of 2008 were driven by the subprime mortgage/credit crunch, with 58 filings containing related allegations. Of these, 17 involved auction rate securities.

Read the report from Cornertone Research and Stanford Law Schools Securities Class Action Clearinghouse here.