Securities class-action filings increased in first half

The number of securities class-action filings rose in the first half of this year compared with the second half of 2023, according to a report released Thursday by Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse.

The report said 112 securities class actions were filed in the first half of this year, up from 103 in last year’s second half. There were 113 securities class actions filed in the first half of 2023.

The total of two securities class actions filed in federal court in this year’s first half involving mergers and acquisitions is on pace to be the lowest annual total since 2009, the report said.

The report now tracks the number of cases involving artificial intelligence, which prompted the filing of six securities class actions in the first half of this year.

Seven securities class actions related to the COVID-19 pandemic’s impact on product demand were filed in the first half, and the number of such cases is expected to increase 27% for the year from the 2023 total, the report said.

The first half of 2024 saw decreases in the filing of securities class actions related to special purpose acquisition companies, cryptocurrency, cybersecurity and banking turbulence.

The report said the likelihood of a core filing, or lawsuit that does not involve allegations related to mergers and acquisition activity, against a U.S. exchange-listed company is expected to increase to 3.9%, an increase from the 3.6% seen from 2010 to 2023.