ROCKVILLE, Md. (January 24, 2023) – During 2022, there were 141 monetary settlements of securities class action suits in the United States valued at a total of $4.77 billion and representing a 36 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 22 percent to 141, of which 110 cases were heard within federal courts and 31 within state courts.
The two largest settlements from 2022 were in cases brought against social media giant, Twitter, Inc., which settled for $809.5 million, and Teva Pharmaceutical Industries Ltd. which settled for $420 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.
“Given the marked growth in total settlement dollars as well as count of settlements, we believe investors will have significant opportunities for recovery over the months ahead,” said Ivar Eilertsen, Global Head of ISS Securities Class Action Services. “ISS SCAS has a long history of helping its clients maximize recoveries while providing high-touch service and leveraging the infrastructure of Institutional Shareholder Services, a leader in the financial services industry.”
The Twitter settlement – which occurred in the Northern District of California and became the 19th largest settlement of all-time – was led by Robbins Geller Rudman & Dowd and Motley Rice as co-lead counsel. The Teva settlement – litigated in the District of Connecticut – was led by lead counsel Bleichmar Fonti & Auld. These top two settlements, combined, represented 25 percent of the total value from the total 141 U.S. securities class action settlements in 2022.
Of the 141 settlements in 2022, ISS SCAS found that 18 involved cases that alleged violations of Generally Accepted Accounting Principles, seven were tied to restated financials, and 22 settlements included allegations of inappropriate stock sales by company insiders. Notably, three companies involved in actions that settled in 2022 had previously filed for bankruptcy and 20 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: https://www.issgovernance.com/library/the-top-100-us-class-action-settlements-of-all-time-as-of-december-2022/
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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