Surge in Global Securities Class Actions in 2024: Broadridge Report Reveals Billions in Settlements
In 2024, global securities class action settlements reached a staggering total of $5.2 billion across 136 cases, according to Broadridge Financial Solutions' latest Global Class Action Annual Report. This sharp rise underscores a pivotal year for investors seeking to reclaim lost funds in a rapidly evolving legal landscape. Steve Cirami, Broadridge's leader in Global Securities Class Actions, commented on the year’s achievements: 'While the overall settlement values slightly declined when compared to last year, they still exceeded the five-year average by 5%, largely fueled by a remarkable 14% increase in U.S. settlements.'
One of the focal points of the report is the significant increase in unresolved cases, which now totals over 1,000 globally, and the substantial influx of new filings, which has become a characteristic of recent years. The ongoing rise in class action lawsuits signifies a growing demand for Broadridge's comprehensive class action services aimed at optimizing shareholder returns.
The report shares pivotal insights and trends from the global securities litigation arena, emphasizing the following highlights:
1. Mega Settlements on the Rise: Ten settlements surpassed $100 million each, marking a 4% increase over the five-year average of such mega-settlements.
2. Record Antitrust Settlements: Antitrust claims matched the previous year's peak, with total recoveries experiencing a notable upsurge of 28%.
3. Increasing Unresolved Cases: The addition of 300 new filings accentuates the higher volume of unresolved securities disputes globally.
4. New Federal Lawsuits: A documented total of 222 new class action lawsuits initiated in U.S. federal courts, continuing an upward trend in filings for the second consecutive year.
The evolving landscape of global securities litigation has also been characterized by significant trends reshaping the industry:
As investors increasingly push for accountability, actions related to ESG have surged. Shareholders leverage collective actions to enforce ESG compliance, showing a commitment to sustainable investing principles.
Aligned with the EU's Representative Actions Directive, compliance milestones were achieved by several member countries in 2024, indicating a shift towards collective redress claims across the continent. More than 100 claims were filed in Europe, setting a standard for opt-in litigation.
The rise of cryptocurrencies amidst regulatory scrutiny has resulted in a concurrent increase in legal disputes involving these digital assets, challenging institutional investors as they navigate the complexities of cryptocurrency litigation.
With cybersecurity being a pressing concern, settlements related to this area dramatically increased, underscoring the need for enhanced disclosure regulations globally.
As advancements in artificial intelligence gather pace, so do the legal disputes stemming from it. Cases related to insufficient disclosures surrounding AI have doubled, prompting shareholders to seek transparent accounts of the risks associated with AI developments.
Additionally, Broadridge's report identifies the ten most administratively intricate settlements from the past year, offering crucial insights for stakeholders navigating the complex legal ecosystem. Significant cases include:
The report encapsulates global cases documented by the Broadridge Asset Recovery Advocate™ database, focusing on publicly traded securities involved in the class action process to secure lost funds. With insights grounded in comprehensive analysis and historical data, the report serves as a resource for understanding the complex nature of securities litigation today.
Broadridge Financial Solutions, Inc. is a global technology leader that empowers clients in the financial services industry to innovate and grow through trusted expertise and transformative technology. Processing over $10 trillion of global securities trading daily, Broadridge is crucial in enhancing operational resiliency and investor experiences. With over 14,000 employees across 21 countries, the company remains committed to delivering excellence across its service offerings.
One of the focal points of the report is the significant increase in unresolved cases, which now totals over 1,000 globally, and the substantial influx of new filings, which has become a characteristic of recent years. The ongoing rise in class action lawsuits signifies a growing demand for Broadridge's comprehensive class action services aimed at optimizing shareholder returns.
Key Insights from 2024
The report shares pivotal insights and trends from the global securities litigation arena, emphasizing the following highlights:
1. Mega Settlements on the Rise: Ten settlements surpassed $100 million each, marking a 4% increase over the five-year average of such mega-settlements.
2. Record Antitrust Settlements: Antitrust claims matched the previous year's peak, with total recoveries experiencing a notable upsurge of 28%.
3. Increasing Unresolved Cases: The addition of 300 new filings accentuates the higher volume of unresolved securities disputes globally.
4. New Federal Lawsuits: A documented total of 222 new class action lawsuits initiated in U.S. federal courts, continuing an upward trend in filings for the second consecutive year.
Influential Trends in Global Securities Litigation
The evolving landscape of global securities litigation has also been characterized by significant trends reshaping the industry:
Environmental, Social and Governance (ESG) Lawsuits
As investors increasingly push for accountability, actions related to ESG have surged. Shareholders leverage collective actions to enforce ESG compliance, showing a commitment to sustainable investing principles.
Legal Evolution in Europe
Aligned with the EU's Representative Actions Directive, compliance milestones were achieved by several member countries in 2024, indicating a shift towards collective redress claims across the continent. More than 100 claims were filed in Europe, setting a standard for opt-in litigation.
Cryptocurrency-Related Issues
The rise of cryptocurrencies amidst regulatory scrutiny has resulted in a concurrent increase in legal disputes involving these digital assets, challenging institutional investors as they navigate the complexities of cryptocurrency litigation.
Cybersecurity Settlements
With cybersecurity being a pressing concern, settlements related to this area dramatically increased, underscoring the need for enhanced disclosure regulations globally.
AI Litigation Growth
As advancements in artificial intelligence gather pace, so do the legal disputes stemming from it. Cases related to insufficient disclosures surrounding AI have doubled, prompting shareholders to seek transparent accounts of the risks associated with AI developments.
The Most Complex Cases of 2024
Additionally, Broadridge's report identifies the ten most administratively intricate settlements from the past year, offering crucial insights for stakeholders navigating the complex legal ecosystem. Significant cases include:
- - Stock Loan Antitrust Class Action: $580 million
- - Mesoblast Securities Litigation: AUD 26.5 million
- - European Government Bonds Antitrust Litigation: $120 million combined
- - Under Armour Securities Litigation: $434 million
Methodology Behind the Report
The report encapsulates global cases documented by the Broadridge Asset Recovery Advocate™ database, focusing on publicly traded securities involved in the class action process to secure lost funds. With insights grounded in comprehensive analysis and historical data, the report serves as a resource for understanding the complex nature of securities litigation today.
About Broadridge
Broadridge Financial Solutions, Inc. is a global technology leader that empowers clients in the financial services industry to innovate and grow through trusted expertise and transformative technology. Processing over $10 trillion of global securities trading daily, Broadridge is crucial in enhancing operational resiliency and investor experiences. With over 14,000 employees across 21 countries, the company remains committed to delivering excellence across its service offerings.
Topics Financial Services & Investing）
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