Broadridge's Insight on Rising Securities Class Actions
In an impressive showcase of investor resilience, global securities class action settlements surged past the $5.2 billion mark in 2024. This staggering figure comes from 136 settlements around the globe, illustrating the increasing demand for accountability in the financial sector. According to the latest comprehensive review conducted by Broadridge Financial Solutions, Inc. (NYSE: BR), the landscape for investors seeking restitution continues to evolve, driven by various financial and regulatory factors.
Analyzing Settlement Trends of 2024
While the total dollar amount for settlements saw a slight decline compared to the previous year, it was still 5% higher than the five-year average. This growth was significantly fueled by a notable 14% increase in settlements within the U.S. market. Steve Cirami, Broadridge's expert on Securities Class Actions, elaborated on the findings, indicating that the emergence of over 300 newly filed cases involving publicly traded securities has pushed the total of unresolved cases tracked by Broadridge to over 1,000 globally, spanning more than 20 countries. These trends reinforce the increasing demand for Broadridge's solutions aimed at optimizing shareholder returns.
Key Highlights of Global Class Actions
Several highlights emerged from the 2024 class actions landscape:
- Mega Settlements Gain Traction: A total of ten class action cases exceeded $100 million each, surpassing the average five-year mega-settlement figure by 4%.
- Antitrust Claims on the Rise: Nine antitrust claim deadlines matched the previous year's highs, leading to an incredible 28% increase in total recoveries.
- Unresolved Cases Climb: The influx of 300 new filings this year emphasizes the growing complexity and volume of unresolved securities disputes on a global scale.
- Federal Filings Increase: In the U.S., there were 222 new securities class action lawsuits filed in federal courts, marking the second year in a row where filings have increased.
Impactful Trends Affecting Securities Litigation
A salient aspect of the report was the identification of major trends significantly reshaping global securities litigation:
- ESG Lawsuits on the Rise: A remarkable surge in Environmental, Social, and Governance (ESG) related shareholder actions is evident, as investors wield collective actions to uphold ESG principles effectively.
- Evolution in European Legal Standards: The European Union has made meaningful strides in implementing the Representative Actions Directive (RAD), with compliance milestones reached by various nations and over 100 collective redress claims filed across Europe.
- Emergence of Cryptocurrency Issues: As cryptocurrencies gain traction amidst prevailing regulatory scrutiny, the rise in legal cases related to digital assets increasingly challenges institutional investors.
- Cybersecurity Settlements Escalate: The significant increase in settlements linked to cybersecurity-related cases underscores the growing importance of adequate disclosure regulations worldwide.
- Growing AI Litigation Concerns: With rapid advancements in artificial intelligence, legal challenges regarding AI disclosures have doubled since earlier years, placing shareholders on alert regarding development risks.
Examining 2024’s Most Complex Settlements
The report also shed light on ten particularly administratively complex settlements of 2024, which serve as essential learning opportunities for navigating the intricate ecosystem of global asset recovery. According to the insights documented in Broadridge's 2025 Global Class Action Annual Report, these cases include:
- Stock Loan Antitrust Class Action - $580,008,750
- Mesoblast Securities Litigation - AUD $26,500,000
- European Government Bonds Antitrust Litigation - $120,000,000 (Combined)
- Perrigo Securities Litigation - $97,000,000
- Gatos Silver, Inc. Securities Class Actions - $24,715,600 (Combined)
- Boohoo Group plc Opt-in Securities Litigation - Pending Litigation (International Opt-in)
- BP Ordinary Shares Fair Fund - $60,923,821
- Cleco Corporation Merger Settlement - $37,000,000
- Oak Street Health Securities Settlement - $60,000,000
- Under Armour Securities Litigation - $434,000,000
Understanding the Report Methodology
The findings in the 2025 Global Class Action Annual Report stem from Broadridge's Asset Recovery Advocate™ database, which meticulously identifies global cases linked to publicly traded securities. The report comprehensively summarizes the most complex cases of 2024, spotlighting numerous others that are noteworthy.
Engaging with Broadridge's Class Action Services
Broadridge's class action experts comprise a dedicated team of attorneys, client advocates, data analysts, and client service representatives, each with an average experience spanning 15 to 20 years in the field. Their comprehensive approach ensures that over 1,000 global organizations utilize Broadridge's class action services to improve standards and recovery efforts. Equipped with advanced technology and best practices, the team focuses on maximizing potential returns for their clients.
A Brief About Broadridge
Broadridge Financial Solutions (NYSE: BR) is a leading technology company committed to powering investing, governance, and communications for its clients in the financial sector. Their innovative technology helps clients navigate challenges, improve operational performance, and elevate investor experiences, processing over 7 billion communications annually and facilitating trading of more than $10 trillion of securities each day.
Frequently Asked Questions
What were the total settlement values reported in 2024?
The total settlement values in 2024 exceeded $5.2 billion across 136 global settlements.
How many new federal securities class actions were filed in the U.S.?
There were 222 new federal securities class action lawsuits filed in the U.S. in 2024, marking an increase for the second consecutive year.
What role does Broadridge play in class action services?
Broadridge provides class action services by analyzing and matching investment positions, aiming to maximize recovery for clients and enhancing overall filing participation.
Can you describe a key trend impacting securities litigation?
A significant trend is the rise in Environmental, Social, and Governance (ESG) related lawsuits, driven by investors leveraging acceptable standards for shareholder practices.
What technologies does Broadridge use for claims administration?
Broadridge employs proprietary technology integrated with its Advocacy Model to streamline processes, enhance client engagement, and increase recovery rates.
