Thursday, 10 January 2008

1 in 5, will there be more?

Advisen published a report to its customers today detailing the 112 companies who have announced write-downs due to subprime.

Notably, only 24 of these companies or 1 in 5 have seen lawsuits (mostly securities class actions). These suits could lead to Directors & Officers and Errors & Omissions claims so Advisen subscribers are getting a head-start on digesting this information.

Since claims are likely to be based around whether the firms adequately disclosed their true exposure to subprime, Advisen doesn't expect suits against all 112 companies, but the list keeps growing.

For more information about the report click here.

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