Institutional and retail investors alike litigated extensively after the 2007–2009 Global Financial Crisis (“GFC”), alleging claims for misconduct of all varieties, resulting in settlements amounting to tens of billions of dollars. Many of these same claims may return during and in the aftermath of the current crisis, the COVID-19 pandemic. Although the exact financial instruments at issue may differ, this article draws parallels between GFC-era cases to the types of litigation that can be expected to arise out of financial losses suffered during the COVID-19 pandemic.
Will the COVID Pandemic Spark a Return in GFC-Type Financial Market Litigation?