NU Online News Service, July 20, 4:02 p.m. EDT

A new report by Advisen Ltd. shows the 2010 second quarter saw a 30 percent jump in securities lawsuit filings compared to the first quarter.

Comparing the second quarter year-to-year, there was a 19 percent increase in litigation.

Securities lawsuit categories include securities class actions, breach of fiduciary duty, securities fraud and derivative actions.

The average settlement for securities class-action litigation for the second quarter increased to $49.6 million from $10.4 million in 2009.

The most common type of suit filed was for breach of fiduciary duty, which typically alleges directors and officers do not uphold their duty to investors, usually after a merger or acquisition, said Advisen. This type of suit accounted for 33 percent of all securities suits.

The report was sponsored by global commercial property and casualty insurer ACE Group.

The Deepwater Horizon oil spill and government investigation of Goldman Sachs spurred the activity in the second quarter, the report said. There was an 82 percent rise in new filings against energy companies compared to the 2010 first quarter.

Financial companies continue to be sued more than any other company, but suits related to the credit crisis have dropped compared to last year and 2008, Advisen found.

Advisen provides insight into underwriting, marketing and purchasing commercial insurance.

Special Reports /

Advisen: 2010 Second-Quarter Securities Lawsuits Surge

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