Developments in securities litigation will pose new challenges to directors and officers underwriters, driven by continued fallout from the subprime crisis, the alleged Madoff fraud, and the jailing of two prominent plaintiffs attorneys, a new Advisen report said.

The report, "Securities Litigation in 2008: Implications for the D&O Market in 2009 and Beyond," compares the securities class action environments in 2007 and 2008, noting that "on the surface, 2008 seemed little different than 2007" with respect to the number of class action suits filed. The report notes that financial firms were targeted in half of the securities suits filed in 2008, continuing a trend that started in 2007 because of the subprime mortgage market meltdown.

But the report states 2008 saw some challenges beyond those in 2007, and those challenges will likely continue into 2009.