Cornerstone Research released its report (here) on its review and analysis of 2007 securities class action settlements.  Of note, in 2007:

• there were 111 securities class actions settlements;
• the aggregate value of settlements (excluding the top four settlements) exceeded all prior years, except for 2006;
• there was an increase in middle range settlements ($10-$20 million), resulting in a median settlement of $9 million; and
• the average settlement amount fell from 2006 levels to $62.7 million (this decline from the historic 2006 levels is partly due to the fact that in 2006 there were four settlements over $1 billion), however, despite this year over year decline, the 2007 average settlement amount was higher than the cases settled from 1996-2006.

Although average settlement amounts in 2007 were lower than the historic 2006 levels, the trend of higher securities class action settlements appears to be continuing.  Perhaps more noteworthy, however, is the fact that middle range settlements ($10-$20 million) are increasing (approximately one-quarter of all settlements).  This suggests that the plaintiffs’ bar is becoming less inclined to settle securities class actions for less than $10 million, even if it means taking the risk that the case will be dismissed at a later stage.