Global Securities Class Actions Recovered $4B in 2025
A report from Broadridge Financial Solutions found that global securities class action litigation resulted in over $4 billion in investor recoveries in 2025. The report also highlights the growing influence of AI-driven case filings and an increase in opt-in momentum from institutional investors.
- A surge in securities class actions related to artificial intelligence is a primary driver of litigation, with 12 such cases filed in the first half of 2025 alone, on pace to exceed the 15 AI-related cases from all of 2024. These lawsuits often allege that companies have overstated the capabilities and market demand for their AI technologies, a practice sometimes called "AI washing". - While overall settlement values were slightly lower in 2025 than in 2024, nine "mega-settlements" exceeded $100 million. Settlements related to Special Purpose Acquisition Companies (SPACs) and mergers accounted for a disproportionately large share of the total recovery amounts. - Geopolitical friction is creating systemic supply chain risks that can lead to securities litigation. Issues such as US-China trade tensions, conflicts impacting shipping lanes like the Red Sea, and competition for critical materials are forcing manufacturers to reconfigure supply chains, which can impact financial disclosures. - Federal filings for new securities class actions in the U.S. remained steady, with 205 new cases in 2025. This indicates a stable, ongoing level of enforcement and litigation activity. - The consumer non-cyclical sector, which includes many manufacturing sub-sectors, saw a 31% increase in case filings in the first half of 2025 compared to the latter half of 2024. The technology and healthcare sectors accounted for 57% of all new filings in 2025. - New SEC disclosure rules regarding climate-related risks are set to take effect for large accelerated filers in 2026 for their 2025 fiscal year reporting. These rules will require disclosures on climate-related risks that are likely to have a material impact on business strategy, operations, or financial condition. - Institutional investors are increasingly choosing to "opt-out" of class action settlements to pursue their own direct lawsuits, a trend that is more common in larger settlement cases. In cases with settlements over $100 million, 62.5% had institutional investors opt out to file separately. - Regulators are increasingly scrutinizing discrepancies between a company's internal communications and its public statements, particularly regarding interactions with bodies like the FDA or EPA. This focus heightens the risk for manufacturing companies, where regulatory compliance is a key operational factor.
