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.
Securities Litigation Flash: Q3 2025
Filing trends Section 10(b) and Section 11 filings totaled 49 during the third quarter of 2025, 16% fewer than in the same period in 2024 and 2% more than in...