Subprime Meltdown Class Action Lawsuits On Rampage

Behind the scenes of the subprime and credit crunch hooplah, subprime-related class action lawsuits have been quietly building up a massive head. Navigant Consulting broke down the numbers on the gathering storm that will take years to dissipate:

  • There are 448 subprime related federal lawsuits as of March 31 2008
  • 170 federal lawsuits were filed in Q1 2008, vs 181 total filed in the last 6 months of 2007
  • The Savings and Loan scandal of the 90’s resulted in 599 lawsuits
  • 57% involved at least one Fortune 1000 company
  • 46% of the subprime related class action lawsuits are brought by borrowers
  • 42% of those are related to disclosures made at loan origination

The Subprime Litigation Tsunami: Are We Dealing with Case Overload? [DSNEWS]
(Photo: Getty)