Recent Trends in Securities Class Action Litigation: 2019 Full-Year Review

21 January 2020
Janeen McIntosh and Svetlana Starykh

In “Recent Trends in Securities Class Action Litigation: 2019 Full-Year Review,” NERA analyzes its proprietary database of securities class action filings and resolutions, identifying the most important trends from 2019. Newly released findings include a high level of filings for the third year running, driven by an increase in standard cases, and the highest recorded median settlement value since 2012.

Highlights of the 2019 report include the following:

Cases alleging missed earnings guidance spiked in 2019, appearing in more than 30% of complaints as the single most common allegation.
In 2019, the health technology and services sector accounted for 21% of non-merger-objection cases filed.
Resolutions declined in 2019, driven primarily by a decline in the number of settled cases and ending a three-year uptick.
For the first time, securities class actions were filed on behalf of investors in the cannabis industry.
NERA’s Predicted Settlement Models, based on two alternative NERA-defined Investor Losses, explain approximately 70% of variation in settlement values.

NERA has reported on trends in securities class actions for over 25 years and is an industry leader in advising clients in the economics of securities, finance, and commerce.