Subprime mortgage litigation surged during the first quarter of 2008, according to a study released today by Navigant Consulting.
The independent consulting firm said 170 cases were filed during the quarter, an 85 increase compared to the next busiest quarter and nearly the same amount filed during the entire second half of 2007.
Of the first quarter cases, 46 percent were borrower class actions, 26 percent were securities cases, and 10 percent were commercial contract disputes.
Navigant noted that the number of subprime cases is “dramatically outpacing” the 2007 filings and are close to surpassing those associated with the savings-and-loan crisis litigation of the early 1990s.
Over the last 15 months, 448 subprime-related cases have been filed, and 86 percent are still active.
Of these, 42 percent named at least one Fortune Global 500 company as a defendant and ten percent of the cases named at least one non-U.S. Global 500 company as a defendant, with British firms accounting for approximately half of the latter.
Hello mortgage crisis.