PwC: Shareholder lawsuits on the increase
PwC released a report showing an increase in federal class-action shareholder lawsuits in 2007 compared to a decline in the two previous years.
Shareholder lawsuits are on the increase, PwC has said.
In 2007 163 cases were filed in the US, compared with 109 in 2006.
That followed two years of decline, with 169 suits filed in 2005 and 206 in
Of those filed in 2007 37 were subprime related, evidence of the court room
impact of the credit crunch.
PwC suggested such claims will surge this year: ‘We will see the full fallout
in 2008,’ said PwC partner Grace Lamont.
Accounting related cases fell from 61% of the total in 2006 to 50% in 2007.
Estimation cases rose from 9% in 2006 to 47% in 2007 and the number of cases
filed against foreign companies increased from 14 in 2006 to 27 in 2007.