Securities Class Action Settlements in 2022 Hit Highest Levels in 15 Years

Cornerstone Research Found Median Settlement Amounts Spiked as Well

Cornerstone Research has released its yearly securities class action litigation report and found dramatic increases in the number of settlements and in the average settlement pools. (The link to the full report is below.)

Cornerstone focused on federal securities class actions, specifically cases alleging Rule 10b-5, Section 11, and Section 12(a)(2) allegations. These suits make up the majority  of the securities litigations which investors are able to participate in each year. The Cornerstone team reviewed 2,116 class actions from 1996 (the year after the passage of the Private Securities Litigation Reform Act) until 2022. Here are some of the key data points:

--The average number of federal securities settlements between 2017 and 2021 was 79. There were 87 in 2021, and 105 last year.

--This spike is largely thanks to the increase in securities class actions filed between 2018 and 2020. In those years filings spiked from the typical low 200s per year to over 400 in ’18 and ’19 to nearly 325 in 2020.

--The average settlement increased 63% over 2021, with the average fund at $36.2 million.

--There were eight mega=-settlements, which are settlements over $100 million.

A longer summary of the report is available here:

And the full report is here:

Sound Busy? Federal Cases Are Only Part of the Securities Class Action Landscape

Take those federal cases and throw in securities litigations in state courts, SEC Fair Funds, and Canadian settlements, and there were 150 funds to participate in last year. Add international litigations beyond Canada, and there are dozens more.

Keeping up with the flow can be a full-time job. Of course, for me it IS my full-time job, but it does not have to be yours. The experts at Chicago Clearing Corporation monitor the entire world of class actions day-in, day-out, so you don’t have to. Whether there are 150 deadlines like in 2022, or 105 like most years, our team will help you get back to your full-time job with the satisfaction of knowing the best class action claim filing service is on your side.

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