If you want to make money from the subprime mess, it appears that it would pay to be a class-action attorney. Litigation tied to the demise of subprime lending is driving an increase in class-action filings, according to a report released Friday by NERA Economic Consulting. 198 class-action cases have been filed in total through December 15, according to the report, with 38 being subprime shareholder class actions. There were a total of zero such cases during 2006. “Because subprime lending cases are already springing up across several Federal Circuits,” the report’s authors said in a press statement, “and as the crisis in the credit markets continues to deepen and the market for subprime mortgages continues to suffer accordingly, more litigation is likely to follow.” The average settlement paid to resolve a shareholder class action case in 2007 was $33.2 million, NERA Economic Consulting said, up nearly 50 percent from 2006. The median settlement also reached a new high in 2007, at just under $10 million.
Class-Actions Spike in 2007, Driven by Subprime Litigation
Most Popular Articles
Latest Articles
Have higher mortgage rates already reversed housing demand?
The strong economic data we’ve seen in the past several weeks underscore why the 10-year yield and mortgage rates rose last week.
-
How to get (or renew) your NMLS license in 2024
-
Anywhere’s Sherry Chris talks brand building, crisis management with the ‘Real Estate Insiders’
-
FHA commissioner, HUD counseling head on serving seniors with reverse mortgages
-
Shareholders sue eXp over alleged mishandling of sexual assault cases
-
Jobs report sends mortgage rates higher