Settlements in Global Class Actions Increased 142% in 2022, Broadridge Annual Class Actions Report Shows

2022 has been one of the busiest years for the global securities class action litigation industry, with settlement recovery opportunities of more than $7.4 billion and 21% more claim filing opportunities, according to the fourth annual Broadridge Global Class Actions Report released by global fintech leader Broadridge Financial Solutions, Inc. (NYSE:BR).

Total settlement value for Global Securities Class Actions increased by 142%. And the number of opportunities to recover assets in securities and financial antitrust class action settlements also increased in 2022, according to the report.

“By most metrics, securities settlement activity in 2022 drove one of the busiest years we’ve ever seen, led by more than ten mega-settlements exceeding $100 million, including the second largest securities settlement outside North America,” said Steve Cirami, Broadridge Global Class Actions leader.

Current Trends in Global Class Action

· Continued focus on ESG, as regulators worldwide look to crack down on ESG greenwashing; coupled with more event-driven securities litigation, the upward trend of ESG-related class actions will remain strong

· Growth in opt-in jurisdictions and the rise in collective investor actions

· SPAC and cryptocurrency-related securities litigations continue trending upwards in 2022. However, this trend is not expected to carry through in 2023 given that SPACs have significantly fallen out of vogue, with a nearly 90% decrease in the number of SPAC IPOs from 2021 to 2022

· Broker-Dealers shift in service, as broker-dealers continue to seek ways to better serve their customers many are providing claim-filing and asset recovery services in lieu of simply notifying retail customers

· New federal forum provisions driving more IPO cases to federal court