Bruce Carton over at the Securities LItigation Watch has posted his annual State of the (Securities Litigation) Union analysis, which provides an excellent overview of the status of class action securities lawsuit sector. Interestingly, it does not appear that the Milberg Weiss troubles or attempts to constrain such lawsuits are having any meaningful effect on the growth of the sector:

Again, viewed in context, neither the number of cases in 2005 nor the NERA dismissal statistics support the argument that securities class actions have recently ìdried upî in any meaningful wayóthe number of cases is roughly what it has been since 1997 and the dismissal rate is, according to NERA, the same as it has been since 1998. [. . .]
With respect to Milberg Weiss, it seems clearer by the day that even if the firmís practice is diminished or destroyed altogether by the indictment, there will not be a significant impact on securities class actions generally. There are far too many competent plaintiffsí law firms out there that will gladly fill any void that may be created. It also appears that to the extent Milberg Weiss is losing any lawyers, it is because these lawyers are being recruited away by competitors, where they will promptly resume their securities class action practices.

Read the entire post.