IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-05045412.html
   My bibliography  Save this paper

Decoding Securities Class Actions: Determinants of Outcomes in the USA

Author

Listed:
  • Sahil Chopra

    (CEPN - Centre d'Economie de l'Université Paris Nord - Université Sorbonne Paris Nord)

Abstract

Securities class actions are considered to be a prominent tool to create a deterrence impact on companies whose wrongdoing has affected their stock prices. Inspired from fraud-market theory, securities class actions do protect small and large investors. It becomes critically important to understand the factors that could impact the outcomes in these lawsuits. This research aims to examine the determinants of settlements specially in securities class actions. The study utilizes a hand-collected data set of 1,241 cases, to analyses the impact of variables that are related to case merit, defendant strength and judicial proceedings. The findings reveal that meritorious lawsuits have higher chances of resulting in a settlement outcome. On the other hand, the market valuation of the defending firm reduces these chances. Judicial experience has a positive influence on facilitating settlements. These conclusions contribute to a better understanding of the factors influencing the settlement outcome and can help in promoting informed policy decisions to stimulate settlement outcomes in such class actions.

Suggested Citation

  • Sahil Chopra, 2025. "Decoding Securities Class Actions: Determinants of Outcomes in the USA," Working Papers hal-05045412, HAL.
    • Handle: RePEc:hal:wpaper:hal-05045412
    Note: View the original document on HAL open archive server: https://hal.science/hal-05045412v1
    as

    Download full text from publisher

    File URL: https://hal.science/hal-05045412v1/document
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-05045412. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.