S ecurities fraud class action lawsuits fell to a record low in 2006, says a report by Stanford Law Schools Securities Class Action Clearinghouse. The number of cases filed was the lowest since the adoption of the Public Securities Litigation Reform Act of 1995. Securities fraud class actions fell by 38% compared with 2005, from 178 filings to 110, making 2006s numbers nearly 43% lower than the 10-year historical average of 193.
Twenty class actions related to options backdating allegations were filed in 2006. Last years complaints contained more allegations of specific accounting irregularities compared with 2005.
Source: http://securities.stanford.edu .
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