ROCKVILLE, Md. (January 25, 2022) –There were in 2021 116 monetary settlements of securities class action suits in the United States valued at a total of $3.51 billion, representing a 7.6 percent increase over the prior year, according to a new report released today by Securities Class Action Services LLC (SCAS), a subsidiary of Institutional Shareholder Services.
The annual ISS SCAS report finds the total number of approved monetary settlements in the U.S. grew by 17.2 percent to 116 of which 91 cases were heard within federal courts and 25 within state courts.
“Investors last year saw significant monetary recoveries relative to 2020 and we expect that trend to continue in 2022,” said Ivar Eilertsen, Head of ISS Securities Class Action Services. “The settlement pipeline this year already appears robust with the lawsuit against Twitter, Inc., alone expected to settle for more than $800 million.”
The two largest settlements from 2021 were in the Valeant Pharmaceuticals International, Inc. matter, which settled for $1.21 billion, and the case brought against social media giant, Snap, Inc., which settled for $187.5 million. Both settlements were large enough to qualify for the list of the top 100 largest U.S. class action settlements approved since the passage of the Private Securities Litigation Reform Act of 1995.
Both of the top two settlements noted above were based on cases that alleged Rule 10b-5 violations. The Valeant settlement – which occurred in U.S.D.C. New Jersey – was led by lead counsel Robbins Geller Rudman & Dowd. The Snap settlement – which resolved both federal and state actions – was led by lead counsel Kessler Topaz Meltzer & Check (federal) and co-lead counsel Robbins Geller Rudman & Dowd, Bottini & Bottini, and Block & Leviton (state). These top two settlements combined represented 40 percent of the total value from all the 116 U.S. securities class action settlements in 2021.
Of those 116 settlements, ISS SCAS found that 30 related to companies’ stock offerings; 18 stemmed from corporate transactions; and 13 involved cases that alleged violations of Generally Accepted Accounting Principles. In addition, eight settlements were tied to restated financials while 10 related to insider trading. Notably, two companies involved in actions that settled in 2021 had previously filed for bankruptcy and seven companies are (or were) listed in the S&P 500 index.
To download a copy of the report and for further information on ISS’ Securities Class Action Services division, please visit us at: http://www.issgovernance.com/scas.
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
Founded in 1985, Institutional Shareholder Services group of companies (ISS) empowers investors and companies to build for long-term and sustainable growth by providing high-quality data, analytics and insight. ISS, which is majority owned by Deutsche Börse Group, along with Genstar Capital and ISS management, is a leading provider of corporate governance and responsible investment solutions, market intelligence, fund services, and events and editorial content for institutional investors and corporations, globally. ISS operates on an arm’s-length basis and Deutsche Börse has adopted Principles protecting the independence and integrity of ISS’ research offerings. ISS’ 2,000 employees operate worldwide across more than 30 global offices in 15 countries. Its more than 4,000 clients include many of the world’s leading institutional investors who rely on ISS’ objective and impartial ESG and governance research, market intelligence and fund services and data and analytics, as well as public companies focused on ESG and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS’ expertise to help them make informed investment decisions.
Media Contact:
Subodh Mishra
Managing Director
Press@issgovernance.com
U.S. Securities Class Action Settlements Tallied $3.51 Billion in 2021, New Report Finds
ROCKVILLE, Md. (January 25, 2022) –There were in 2021 116 monetary settlements of securities class action suits in the United States valued at a total of $3.51 billion, representing a 7.6 percent increase over the prior year, according to a new report released today by Securities Class Action Services LLC (SCAS), a subsidiary of Institutional Shareholder Services.
The annual ISS SCAS report finds the total number of approved monetary settlements in the U.S. grew by 17.2 percent to 116 of which 91 cases were heard within federal courts and 25 within state courts.
“Investors last year saw significant monetary recoveries relative to 2020 and we expect that trend to continue in 2022,” said Ivar Eilertsen, Head of ISS Securities Class Action Services. “The settlement pipeline this year already appears robust with the lawsuit against Twitter, Inc., alone expected to settle for more than $800 million.”
The two largest settlements from 2021 were in the Valeant Pharmaceuticals International, Inc. matter, which settled for $1.21 billion, and the case brought against social media giant, Snap, Inc., which settled for $187.5 million. Both settlements were large enough to qualify for the list of the top 100 largest U.S. class action settlements approved since the passage of the Private Securities Litigation Reform Act of 1995.
Both of the top two settlements noted above were based on cases that alleged Rule 10b-5 violations. The Valeant settlement – which occurred in U.S.D.C. New Jersey – was led by lead counsel Robbins Geller Rudman & Dowd. The Snap settlement – which resolved both federal and state actions – was led by lead counsel Kessler Topaz Meltzer & Check (federal) and co-lead counsel Robbins Geller Rudman & Dowd, Bottini & Bottini, and Block & Leviton (state). These top two settlements combined represented 40 percent of the total value from all the 116 U.S. securities class action settlements in 2021.
Of those 116 settlements, ISS SCAS found that 30 related to companies’ stock offerings; 18 stemmed from corporate transactions; and 13 involved cases that alleged violations of Generally Accepted Accounting Principles. In addition, eight settlements were tied to restated financials while 10 related to insider trading. Notably, two companies involved in actions that settled in 2021 had previously filed for bankruptcy and seven companies are (or were) listed in the S&P 500 index.
To download a copy of the report and for further information on ISS’ Securities Class Action Services division, please visit us at: http://www.issgovernance.com/scas.
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
Founded in 1985, Institutional Shareholder Services group of companies (ISS) empowers investors and companies to build for long-term and sustainable growth by providing high-quality data, analytics and insight. ISS, which is majority owned by Deutsche Börse Group, along with Genstar Capital and ISS management, is a leading provider of corporate governance and responsible investment solutions, market intelligence, fund services, and events and editorial content for institutional investors and corporations, globally. ISS operates on an arm’s-length basis and Deutsche Börse has adopted Principles protecting the independence and integrity of ISS’ research offerings. ISS’ 2,000 employees operate worldwide across more than 30 global offices in 15 countries. Its more than 4,000 clients include many of the world’s leading institutional investors who rely on ISS’ objective and impartial ESG and governance research, market intelligence and fund services and data and analytics, as well as public companies focused on ESG and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS’ expertise to help them make informed investment decisions.
Media Contact:
Subodh Mishra
Managing Director
Press@issgovernance.com
The Floor is Lava: Where will investors seek refuge?
IA to Review UK Remuneration Principles to Reflect Ongoing Executive Pay Debate
Different Views of Sustainability: Alternative Approaches to Applying the EU’s Disclosure and Naming Rules in Practice
ISS Announces 2022 Benchmark Policy Updates