The total settlement value for global securities class actions was up 142 per cent over the course of 2022, according to a recent report from Broadridge Financial Solutions (Broadridge).
The company’s fourth annual “Global Class Actions Report” reports more than US $7.4 billion in settlement recovery opportunities, 21 per cent more claim filing opportunities and similar increases in securities and financial antitrust class action asset recovery opportunities.
Broadridge’s report considered more than 160 global cases involving financial instruments with claim filing deadlines in 2022. The ten most complex receive in-depth analysis, with this year’s report naming the Steinhoff global settlement, the SIBOR/SOR antitrust litigation and the Teva securities litigation as the top three.
Looking at the key trends in global class action, Broadridge cites a focus on ESG, including greenwashing prevention and event-driven securities litigation, as a factor in the sector’s growth. The broader range of services provided by broker-dealers, many of whom now offer claim-filing and asset recovery services to clients, is also a contributor, the report adds.
A consistent increase in special purpose acquisition company and cryptocurrency-related securities litigations has similarly helped to boost figures, however Broadridge notes that 2022 was likely the last year to see an upward trend in this area.
Steve Cirami, Broadridge global class actions leader, comments: “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 US $100 million, including the second largest securities settlement outside North America.”
