US securities fraud class actions tumble

Fewer investors are taking corporate America to court for fraud.

The number of new federal securities fraud lawsuits seeking class-action status fell to a 7-year low last year, according to a study by Stanford Law School and Cornerstone Research released on Wednesday.

Just 152 such lawsuits were filed last year, down 19 per cent from 188 in 2011, mainly because of fewer lawsuits challenging mergers.

Last year’s total is also 20 per cent below the average of 190 for the period from 1997 to last year.

via Business feed http://www.scmp.com/business/companies/article/1134407/us-securities-fraud-class-actions-tumble