Securities settlements for class actions in 2022 rose to 105, the highest number in 15 years, but the pace may now be slowing, according to research published on Thursday.
The total settlement value of $3.8 billion compared to 2021’s $1.9 billion, when there were 87 settlements, according to a report by San Francisco-based Cornerstone Research.
The median settlement amount of $13 billion was the highest since 2018, according to the report.
“The historically high number of settlements in 2022 can likely be explained by several factors, including a correspondingly high number of case filings between 2018 and 2020, when over 70% of settled cases in 2022 were filed,”; said Laarni T. Bulan, a report co-author, and principal at Cornerstone Research, in a statement.
Cornerstone said the increase in total settlement dollars also reflects eight mega settlements of at least $100 million, which ranged in size up to $809.5 million.
Cornerstone Research senior counsel and report co-author Laura E. Simmons said in a statement, “Looking ahead, recent trends in securities class action filings suggest that we may see a slowdown in settlement activity, as well as some changes in the focus of case allegations, to example against cryptocurrency-related issues.”