Median Securities Class Action Settlement Hits 29-Year High
Securities class action settlements reached a 29-year high in 2025, with a median settlement of $17.3 million despite fewer overall settlements.Summary
According to a report by Cornerstone Research, the median settlement amount for securities class action lawsuits reached $17.3 million in 2025, the highest level since 1997, representing a 20% increase from the previous year. This rise is attributed, in part, to larger settlements in cases involving claims solely under the Securities Act of 1933 (’33 Act). The report’s authors, Dr. Laarni T. Bulan and Eric Tam, noted that ’33 Act cases were unusually complex, with a record high number of docket entries, which correlates with higher settlement amounts. While the total number of settlements decreased to 74, totaling $3 billion (down from 88 settlements and $3.8 billion in 2024), the median settlement for ’33 Act-only cases more than tripled to $32.5 million. The decline in settlements related to special purpose acquisition companies (SPACs) also contributed to the higher median. Looking forward, the authors anticipate a continued lower number of settled cases, but potential large settlements pending approval could increase overall settlement dollars in 2026.
(Source：Insurance Journal)