The number of securities class-action filings increased 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, compared to 103 cases filed in the second half of last year. 113 securities class actions were filed in the first half of 2023.
The total number of securities class actions filed in federal court related to mergers and acquisitions in the first half of this year is on track to be the lowest annual total since 2009, the report said.
The report now tracks the number of cases involving artificial intelligence, which led to six securities class actions being filed in the first half of this year.
Seven securities class actions related to the impact of the COVID-19 pandemic on product demand were filed in the first half, and the number of such cases is expected to grow 27% for the year from the 2023 total, the report said.
The first half of 2024 saw a decrease in the filing of securities class actions related to special purpose acquisition companies, cryptocurrencies, cybersecurity, and banking turmoil.
The probability of a core filing or lawsuit being filed against a company listed on a US exchange, which does not include allegations related to mergers and acquisitions activity, is expected to rise to 3.9%, up from 3.6% seen from 2010 to 2023, the report said.
