“The sharp increase in the disclosure and maximum dollar loss metrics is the big news, because it suggests large future settlement values. The larger dollar amount at issue is far more important than the modest decline in the number of companies sued,” said Joseph Grundfest, emeritus law professor at Stanford.

“The market should also watch the SEC’s enforcement agenda,” Grundfest said. “Private litigation sometimes rides on SEC enforcement coattails. So, if the SEC sues fewer issuers, those coattails are shorter and fewer public companies will experience a ‘me-too’ private litigation effect.”