Stock Drop Lawsuits

According to a Fiduciary Counselors compilation of lawsuits involving employer stock, the 53 cases filed between since the late 1990s have resulted in approximately $1.47 billion in judgments and settlements. This amount includes attorney fees and court costs, which vary from case to case, but average somewhat over 25% of the total. The site indicates that approximately 1.3 million participants are affected by the judgments and settlements, although not all those people may be part of the classes receiving awards. Almost one-third of the total dollar amount is attributable to four cases (Enron, which is about one-sixth of total; AOL; the Williams Company; and Royal Dutch Shell). That means that outside of these cases, the average employee is receiving only several hundred dollars per settlement. Only a handful of these cases involve ESOPs (it is not possible from the table to determine a precise number).