“Mega-Settlements” On The Rise

The number of class action settlements reached in 2015 – 80 – was the most since 2010, and six of those settlements ranged between $100 million and $200 million, including one that closed in on $1 billion. Those “mega-settlements” drove the total value of securities class-action settlements to triple over 2014. Cornerstone Research’s analysis of federal securities class actions found that, while the average settlement size was larger in 2015, the median amount has not changed significantly in the last three years. More may be on the horizon: more class actions were filed in 2015 than in any year since 2008. “The increases in case filings may suggest that higher numbers of settlements will persist in the near future,” said Cornerstone senior advisor Laura Simmons.