Cornerstone Research has issued an interesting report on opt-outs in securities class action settlements (i.e., when a putative class member chooses not to participate in the settlement and may consider bringing its own direct action against the defendants). A few highlights from the results:
(1) The percentage of securities class action settlements with at least one opt-out has been steadily increasing, although it remains relatively small. The report concludes that from 1996 to 2005 the rate of opt-outs was 2.9%. From 2006 to 2018 the rate increased to 5.8%, and then has jumped from 2019 to H1 2022 to 11.5%….
Source: Opting Out | The 10b-5 Daily