A survey made by NERA Economic Consulting firm has shows that the number of securities class action filings in Australia reached record high in 2009 and broke the previous record set in 2008. At least six securities class actions were filed in 2009, which brings the total for 2007-2009 to 14 - exactly half of total number of filings since the first securities class action case was filed in Australia in the early 1990s.

According to the study entitled, "Trends in Australian Securities Class Actions: 1 January 1993 - 31 December 2009," a key factor in the recent increase in securities class action filings has been a change in the way securities class action litigation is funded in Australia. Until only a few years ago, there was a strong disincentive to bring an action due to the risk of incurring significant legal costs.

The emergence of commercial litigation funding has improved the incentive and ability for investors to participate in class actions, say the study's authors, NERA Director Greg Houston, Senior Consultant Svetlana Starykh, and Analyst Astrid Dahl. Since 2005, the large majority of class actions have been financed by a commercial litigation funder.

"The emergence over the past few years of commercial litigation funders as major players is the most recent step in the emergence of securities class actions as a permanent, significant feature of Australia's business and litigation environment," said Mr. Houston. "Although there are still uncertainties that the courts must resolve in Australia's relatively young securities class actions regime, we think that the most likely trend is that the rate of growth in filings evident in recent years will continue."

The NERA study also found that:

* More than half the securities class actions filed between 1999 and 2009 alleged either misleading or deceptive conduct, or failure by companies to disclose promptly information material to the value of their securities.

* More than half of all securities class actions were brought against companies in the financial industry (including insurance and real estate).

* Settlement is the most likely outcome of securities class action cases in Australia. Eight of the 12 class actions resolved by the end of 2009 were settled. This trend has become more pronounced in recent years - all of the resolved cases filed after 2003 were settled. Only two Australian securities class action cases have been resolved by final judgment.