Figure Represents Highest Total Over Past Five Years
ROCKVILLE, Md. (February 5, 2024) – In 2023, recorded settlement funds stemming from securities class actions in the U.S. surpassed the prior year’s total by approximately $600 million, making it a banner year for investor recoveries, according to a new report released today by Securities Class Action Services LLC (SCAS), part of the ISS STOXX group of companies.
While the annual ISS SCAS Top 100 report finds that the total number of approved monetary settlements in the U.S. decreased by 10 percent, the average value of these settlements increased significantly to $45.4 million, representing an 18 percent increase over the prior year. The report also indicates a significant rise in the value of state court settlements in 2023. Cases that received judgment at the state court level provided for a total of $1.9 billion in recoveries, representing the highest amount recorded by SCAS in a calendar year.
For the first time since 2020, there were four settlements in a calendar year that yielded sufficient dollar recoveries to be included in SCAS’ annual report on the Top 100 largest U.S. settlements of all-time. Of the four settlements, two stemmed from cases filed against banking giant Wells Fargo, one of which resulted in a $1 billion settlement and the other a $300 million payout. The two others resolved allegations against Dell Technologies for $1 billion, and Kraft Heinz for $450 million, respectively. These top four settlements combined to represent 59 percent of the total value of all 127 U.S. class action settlements in 2023.
“2023 proved to be a banner year for recoveries and the pipeline for 2024 suggests another strong year ahead for investors,” said Ivar Eilertsen, Global Head of ISS Securities Class Action Services. “ISS SCAS has a long history of helping clients maximize recoveries through high-touch service and cutting-edge workflow solutions.”
In addition to the significant settlements, 2023 was a robust year for disbursements, meaning the funds were distributed to eligible investors. Class action settlements representing $6.5 billion in aggregate value ($4.9 billion in the US) made initial disbursements in 2023. These are highest totals recorded since 2019. Notable disbursements include the $1.6 billion global Steinhoff settlement and the $1.2 billion settlement with Valeant Pharmaceuticals.
To download a copy of the report and for further information on ISS’ Securities Class Action Services division, please visit us at: https://www.issgovernance.com/library/the-top-100-us-class-action-settlements-of-all-time-as-of-december-2023/.
Editors: Please note that any citation of statistics contained within the report should be attributed, in full, to “ISS Securities Class Action Services.”
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About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
Media Contact:
Corey Whipple
Analyst, Communications
Press@issgovernance.com
Banner Year for Securities Class Actions With $5.8 Billion in Settlement Proceeds in U.S.
Figure Represents Highest Total Over Past Five Years
ROCKVILLE, Md. (February 5, 2024) – In 2023, recorded settlement funds stemming from securities class actions in the U.S. surpassed the prior year’s total by approximately $600 million, making it a banner year for investor recoveries, according to a new report released today by Securities Class Action Services LLC (SCAS), part of the ISS STOXX group of companies.
While the annual ISS SCAS Top 100 report finds that the total number of approved monetary settlements in the U.S. decreased by 10 percent, the average value of these settlements increased significantly to $45.4 million, representing an 18 percent increase over the prior year. The report also indicates a significant rise in the value of state court settlements in 2023. Cases that received judgment at the state court level provided for a total of $1.9 billion in recoveries, representing the highest amount recorded by SCAS in a calendar year.
For the first time since 2020, there were four settlements in a calendar year that yielded sufficient dollar recoveries to be included in SCAS’ annual report on the Top 100 largest U.S. settlements of all-time. Of the four settlements, two stemmed from cases filed against banking giant Wells Fargo, one of which resulted in a $1 billion settlement and the other a $300 million payout. The two others resolved allegations against Dell Technologies for $1 billion, and Kraft Heinz for $450 million, respectively. These top four settlements combined to represent 59 percent of the total value of all 127 U.S. class action settlements in 2023.
“2023 proved to be a banner year for recoveries and the pipeline for 2024 suggests another strong year ahead for investors,” said Ivar Eilertsen, Global Head of ISS Securities Class Action Services. “ISS SCAS has a long history of helping clients maximize recoveries through high-touch service and cutting-edge workflow solutions.”
In addition to the significant settlements, 2023 was a robust year for disbursements, meaning the funds were distributed to eligible investors. Class action settlements representing $6.5 billion in aggregate value ($4.9 billion in the US) made initial disbursements in 2023. These are highest totals recorded since 2019. Notable disbursements include the $1.6 billion global Steinhoff settlement and the $1.2 billion settlement with Valeant Pharmaceuticals.
To download a copy of the report and for further information on ISS’ Securities Class Action Services division, please visit us at: https://www.issgovernance.com/library/the-top-100-us-class-action-settlements-of-all-time-as-of-december-2023/.
Editors: Please note that any citation of statistics contained within the report should be attributed, in full, to “ISS Securities Class Action Services.”
###
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
Media Contact:
Corey Whipple
Analyst, Communications
Press@issgovernance.com
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