Litigation partners Sandra Grannum and Jeffrey Jacobson coauthored an article for the New York Law Journal that highlights the increasing number of class action filings in New Jersey. Specifically, they note that New Jersey was the second-highest venue for securities class action settlements in 2021, behind only the Southern District of New York.
Grannum and Jacobson explain how the increase in filling securities claims in New Jersey likely isn’t due to speed and favorable differences in law. They propose that it may be because New Jersey federal courts have a recent history of approving larger percentage fee requests. Many of the recent New Jersey cases have been brought against smaller, foreign-based defendants and in smaller cases, plaintiffs’ counsel may seek a higher percentage.
The authors provide case examples for how it seems plausible that fee considerations are among the reasons why securities class action cases are making their way across the Hudson River in greater numbers. They add that the manner in which the new judges in the District of New Jersey approach securities cases going forward, including with respect to counsel fees when cases settle, will likely determine if this trend toward New Jersey filings will continue.