NERA has released “Recent Trends in Securities Class Action Litigation: 2024 Full-Year Review,” the latest edition of its annual report. The report continues our analysis of filing, dismissal, and settlement trends and presents new analyses related to current topics.
Director Edward Flores and Associate Director Svetlana Starykh, the report’s authors, utilize NERA’s proprietary database of federal securities class actions, which spans more than three decades.
- There were 229 new federal securities class action suits filed in 2024, matching the total number of filings seen in 2023.
- Filings against companies in the technology and healthcare sectors combined accounted for more than half of all filings, and the Second and Ninth Circuits accounted for 61% of filings.
- Of the 229 cases filed, 41% had an allegation related to missed earnings guidance while only 8% had an allegation related to merger-integration issues.
- AI- and COVID-related claims increased in 2024. AI-related claims more than doubled relative to 2023, with 13 suits filed in 2024. Nineteen cases with COVID-related claims were filed, a 46% increase from 2023.
- Crypto- and SPAC-related filings continue to decline, with only eight and nine suits filed in each category, respectively.
- After a six-year decline, resolutions increased by 17% with 217 cases resolved, consisting of 124 dismissals and 93 settlements. The increase was mostly driven by an increase in the number of dismissed cases with Rule 10b-5, Section 11, and/or Section 12 claims.
- Aggregate settlements totaled $3.8 billion in 2024, with the top 10 settlements accounting for approximately 60% of this amount.
- The median Investor Losses were $1.76 billion, the highest recorded value over the past 10 years.
- Aggregate plaintiffs’ attorneys’ fees and expenses totaled $1.06 billion, nearly $90 million more than the $974 million from 2023.
NERA has reported on trends in securities class actions for over three decades and is an industry leader in advising clients in the economics of securities, finance, and commerce.
