SEC Rule 201 restricts short selling activity if a stock declines at least 10% from the previous trading day’s close. Historical experience indicates that while the restriction is likely to apply to a relatively small percentage of all stocks on an average day, the restriction is likely to prove relevant in a large number of securities class actions.
From preliminary to final approval: How often do settlements in securities class actions fail?
In this CRA Insights, Rahul Chhabra presents analysis of the Institutional Shareholder Services (ISS) data on cases filed in the past 10 years involving...