Federal Court Securities Class Action Lawsuit Filings Increased in 2023 | The D&O Diary

D&O insurers closely track the number of annual securities class action lawsuit filings. The number of annual filings can provide some indication of the insurers’ ultimate loss costs for the year. The current year’s filing patterns can also inform the insurers’ efforts to try to determine the profit-making price for their insurance product.

In 2023, the number of federal court securities class action lawsuits filed increased about 7% compared to 2022, although the number of federal suit filings still remained well below the elevated levels seen in the recent past. Several factors contributed to the increased number of securities suit filings during the year, including disruption in the banking sector as well as the overall impact of macroeconomic factors.

Source: Federal Court Securities Class Action Lawsuit Filings Increased in 2023 | The D&O Diary