Cornerstone Research: Securities Suit Settlements at High Levels in 2022 | The D&O Diary

In looking ahead, the authors note that given the reduced numbers of securities class action lawsuit filings during 2021 and 2022, settlement activity may slowdown or flatten out in the upcoming years, absent an increase in the dismissal rate. In addition, given the more active SEC enforcement approach under the current administration, the number of settled cases involving parallel SEC actions may increase, reversing a recent trend toward fewer settlements involving parallel actions. Finally, given the increase in the numbers of filings in 2021 and 2022 involving COVID-19, SPACs and cryptocurrencies, “we expect increased settlement activity for these cases in the future.”

Source: Cornerstone Research: Securities Suit Settlements at High Levels in 2022 | The D&O Diary