#United States #Bethesda #securities litigation #Rule 10b-5 #SAR

Overview of Increased Settlements in Securities Class Actions

In a revealing report released by Securities Analytics Research (SAR), the landscape of securities class action settlements has dramatically shifted in the latter half of 2025. The Securities Class Action Rule 10b-5 Exposure Report for 4Q 2025 outlined key findings that show not only doubling in settlement amounts but also significant fluctuations in alleged market capitalization losses.

Declining Market Capitalization Losses

According to SAR, alleged market capitalization losses claimed by investor plaintiffs against both U.S. and non-U.S. public companies reached $307.7 billion in the second half of 2025. This represents a staggering 59% decrease from the first half of the year. This decline is attributed to a lower frequency of class action filings and a notable drop in corporate disclosures alleging securities fraud.

In the first half of 2025, class action lawsuits were linked to 163 corporate disclosures, while this number plummeted to 109 during the second half. Despite these decreases, the average losses per Rule 10b-5 claim remained stable, showing that while fewer claims were filed, the severity of allegations did not diminish.

Rise of Settlement Amounts

One of the most striking aspects of the SAR report involves the settlement amounts in securities class actions, which nearly doubled, jumping to an average of $42.8 million per suit in the latter half. During this period, 20 private Rule 10b-5 securities class actions reached settlements totaling $856 million, showcasing a notable increase of approximately 95% compared to the first half of 2025.

Nessim Mezrahi, Co-Founder and CEO of SAR, noted that investor plaintiffs increasingly focused on maximizing settlements rather than pursuing new litigation. This strategic shift is significant, as it reflects a more proactive approach to resolving existing cases.

Continued High Stakes in Securities Class Actions

Despite the decline in new filings, the latter half of 2025 witnessed the total alleged market capitalization losses claimed against U.S. public companies surpassing one trillion dollars—an unprecedented level in recent years.

Average losses associated with Rule 10b-5 claims were reported at $4.6 billion, while the average alleged loss per corporate disclosure stood at $2.8 billion. It's noteworthy that these figures are higher than any semi-annual period in the previous year, showcasing that while claims may have decreased, their financial implications remained significant.

Notably, Bernstein Litowitz Berger & Grossmann LLP emerged as a leading firm in this arena, holding the highest average settlement figure of $94.1 million in private securities fraud cases since 2018. This underscores the importance of effective legal representation in navigating complex class action lawsuits.

Conclusion

The second half of 2025 has painted a complex picture for securities class action litigation in the U.S. While the number of new claims has decreased, the settlements involving these claims have soared, reflecting both an evolving legal landscape and strategic adaptations by investor plaintiffs. As the market continues to navigate these turbulent waters, the implications for companies and their directors and officers remain paramount, especially in a regulatory environment increasingly scrutinizing issues of fraud and investor protections.