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24 January 2023

New Report Shows the Lowest Number of Federal Securities Class Actions Filed Since 2009

Svetlana Starykh Janeen McIntosh Edward Flores

Splash of color

NERA Economic Consulting has released “Recent Trends in Securities Class Action Litigation: 2022 Full-Year Review,” the latest edition of its annual report. The report continues our analysis of filing and settlement trends and presents new analyses related to current topics. Senior Consultants Janeen McIntosh, Svetlana Starykh, and Edward Flores analyze NERA’s proprietary database and cover the most prominent litigation trends of 2022.

  • 205 new federal securities class action suits were filed in 2022, compared to 210 in 2021 and 431 in 2018.
  • 25 crypto federal class action suits were filed, more than double the number of similar suits filed in 2021.
  • The number of resolved cases—dismissed and settled—declined in 2022 to 214 from 248 in 2021.
  • Aggregate settlements for 2022 totaled $4 billion, more than double the inflation-adjusted total for 2021 of $1.9 billion. The average settlement value was $38 million, a more than 50% increase from 2021.
  • Cases filed against defendants in the health technology and services sector and in the electronic technology and services sector each accounted for 27% of total cases.
  • Of the 205 cases filed, 33% involved allegations related to misled future performance.
  • Aggregate plaintiffs’ attorneys’ fees and expenses exceeded $1 billion for the first time since 2018.
  • The median Investor Losses for cases settled in 2022 was $972 million, the highest recorded value in the 2013–2022 period.

NERA has reported on trends in securities class actions for more than three decades and is an industry leader in advising clients in the economics of securities, finance, and commerce. The authors invite you to contact them for more information about the report or how NERA can assist your organization

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Experts

Svetlana
Svetlana Starykh, MA
Associate Director, Securities Class Actions Database
Janeen
Janeen McIntosh, MS
Senior Consultant
Edward
Edward Flores, MA
Senior Consultant

About NERA

Since 1961, NERA has provided unparalleled guidance on the most important market, legal, and regulatory questions of the day. Our work has shaped industries and policy around the world. Our field-leading experts and deep experience allows us to provide rigorous analysis, reliable expert testimony, and data-powered policy recommendations for the world’s leading law firms and corporations as well as regulators and governments. Our experience, integrity, and economic ingenuity mean you can depend on us in the face of your biggest economic and financial challenges.