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Securities Class Action Settlements in 2022 Hit Highest Levels in 15 Years
March 08, 2023

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:

https://www.cornerstone.com/insights/press-releases/securities-class-action-settlements-highest-level-in-15-years/

And the full report is here:

https://www.cornerstone.com/wp-content/uploads/2023/03/Securities-Class-Action-Settlements-2022-Review-and-Analysis.pdf

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.

Written By: Dennis O'Toole

I could go on and on, but bottom line, the fees being charged are much less than what I was spending in house to file and this is just one less thing I have to spend time trying to figure out how to complete on a consistent basis. Dealing with the CCC staff has been a very positive thing.

- National Bank

We were spending countless hours on class action claims before we signed on with CCC in January. Matt Murray and their technical team ensured our data transmission was seamless and secure. We found everyone at CCC to be professional, courteous, and accommodating.

- Savings Bank

Signing with CCC has made a huge difference. Before, it was horrible. We had to print thousands of pieces of paper, invite clients to come in and sit down with us to show them where to find the transactions, how to input them into the Proof of Claim forms. Now it's simple. It’s very nice to be able to tell our client, “You can shred that Proof of Claim form because CCC has it taken care of.

- Registered Investment Advisor

Your client reporting portal and customer service is the reason we chose Chicago Clearing. I send the data on an annual basis to CCC and they take it from there. My clients are protected (if there is a class action, it is getting filed), the Bank is protected (we are meeting our fiduciary obligation by filing the claims).

- Bank

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