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U S securities class actions drop in 2020 — except those against Canadian firms

James Langton Amid the disruption caused by the global pandemic, the volume of U.S. securities class actions declined in 2020, according to a new report from Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse. The total number of securities class action filings dropped by 22% last year, driven by a 38% decline in federal filings involving mergers and acquisitions. Excluding M&A activity, class action filings were down by 12% year over year, it reported. While total class action activity was down, cases brought in the U.S. against Canadian companies hit an all-time high in 2020, Cornerstone Research reported. There were 12 cases filed in U.S. federal courts involving Canadian firms last year, up from nine in 2019 and six in 2018.

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