Guest Post: Why are Securities Class Action Mediations Different from Other Mediations? | The D&O Diary

One reason for this difference is that securities cases often have very large amounts of money at stake (hundreds of millions or even billions of dollars are commonly claimed).  Furthermore, securities actions are governed by a highly complex body of case law from state and federal courts at all levels, including the Supreme Court, as well as pleading requirements, discovery stays, defenses and other special provisions and procedures that are unique to the Securities and Exchange Act of 1934, the Securities Act of 1933 and the Private Securities Litigation Reform Act.  Because of the complexity of the analysis of the laws at issue, the parties often find themselves taking quite different views of the strength of the claims made.  This combination of large amounts of money at stake and the complexity of laws at issue frequently results in parties whose settlement positions are far apart.

In addition to the size and complexity of securities cases, securities class actions are often “different” from other cases, because of the sheer number of people, usually with conflicting interests, involved in resolving these cases….

Source: Guest Post: Why are Securities Class Action Mediations Different from Other Mediations? | The D&O Diary