The Broadridge report finds ESG investing and crypto disputes as key enforcement trends
“By most metrics, securities settlement activity in 2022 was one of the busiest years we’ve ever seen, led by more than ten mega-settlements in excess of $100 million, including the second-largest securities settlement outside of North America.”
Broadridge’s Class Action Services division has released the fourth annual Broadridge Global Class Actions Report, which noted that 2022 has been one of the busiest years for the global securities industry for class actions, with settlement recovery opportunities of more than $7.4 billion dollars and 21% more claims. archiving options.
According to the report, the total settlement value of Global Securities Class Actions increased by 142%, and the number of opportunities to recover assets in securities and financial antitrust class actions also increased in 2022.
Broadridge Class Action Services is a team of dedicated class action experts that includes attorneys, client counsel, class action auditors, data analysts, research experts and customer service representatives serving over 900 organizations due to its worldwide reach.
More than ten mega settlements over $100 million in 2022
Steve Cirami, Head of Broadridge Global Class Actions, said: “By most metrics, securities settlement activity in 2022 was one of the busiest years we have ever seen, led by more than ten mega-settlements in excess of $100 million, including the second-largest securities settlement outside of North America.”
The report highlights the current trends in global class actions, including:
- 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 investor class actions
- SPAC and cryptocurrency-related securities litigation continues to trend upward in 2022. However, this trend is not expected to break through in 2023 given that SPACs have fallen significantly out of fashion, with a nearly 90% decline 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, offering many claims filing and asset recovery services rather than just notifying retail customers
- New federal forum rules bring more IPO cases to federal court
- Short-Seller Clow-Back Exposure Concerns in Delaware Merger Cases
The report also provided an in-depth analysis of the 10 most complex class actions involving financial instruments in 2022:
Steinhoff Global Settlement €1,400,000,000 (Netherlands and South Africa)
SIBOR/SOR Antitrust Litigation $155,458,000 (US)
Teva Securities Litigation $420,000,000 (US)
Precious Metals Antitrust Litigations $110,000,000 (combined) (US)
Navient Securities Litigation $35,000,000 (US)
Airbus SE $5,000,000 (US); Pending legal cases (Netherlands)
Luckin Coffee Inc. Securities Litigation $175,000,000 (US)
CannTrust Global Settlement $83,000,000 CAD (Canada and US)
Crown Resorts Securities Litigation $125,000,000 AUD (Australia)
Twitter Securities Litigation $809,500,000 (US)
