Banner Year for Securities Class Actions With $5.8 Billion in Settlement Proceeds in U.S.

Figure Represents Highest Total Over Past Five Years

ROCKVILLE, Md. (February 5, 2024) – In 2023, recorded settlement funds stemming from securities class actions in the U.S. surpassed the prior year’s total by approximately $600 million, making it a banner year for investor recoveries, according to a new report released today by Securities Class Action Services LLC (SCAS), part of the ISS STOXX group of companies.

While the annual ISS SCAS Top 100 report finds that the total number of approved monetary settlements in the U.S. decreased by 10 percent, the average value of these settlements increased significantly to $45.4 million, representing an 18 percent increase over the prior year. The report also indicates a significant rise in the value of state court settlements in 2023. Cases that received judgment at the state court level provided for a total of $1.9 billion in recoveries, representing the highest amount recorded by SCAS in a calendar year.

For the first time since 2020, there were four settlements in a calendar year that yielded sufficient dollar recoveries to be included in SCAS’ annual report on the Top 100 largest U.S. settlements of all-time. Of the four settlements, two stemmed from cases filed against banking giant Wells Fargo, one of which resulted in a $1 billion settlement and the other a $300 million payout. The two others resolved allegations against Dell Technologies for $1 billion, and Kraft Heinz for $450 million, respectively. These top four settlements combined to represent 59 percent of the total value of all 127 U.S. class action settlements in 2023.

“2023 proved to be a banner year for recoveries and the pipeline for 2024 suggests another strong year ahead for investors,” said Ivar Eilertsen, Global Head of ISS Securities Class Action Services. “ISS SCAS has a long history of helping clients maximize recoveries through high-touch service and cutting-edge workflow solutions.”  

In addition to the significant settlements, 2023 was a robust year for disbursements, meaning the funds were distributed to eligible investors. Class action settlements representing $6.5 billion in aggregate value ($4.9 billion in the US) made initial disbursements in 2023. These are highest totals recorded since 2019. Notable disbursements include the $1.6 billion global Steinhoff settlement and the $1.2 billion settlement with Valeant Pharmaceuticals.

To download a copy of the report and for further information on ISS’ Securities Class Action Services division, please visit us at: https://www.issgovernance.com/library/the-top-100-us-class-action-settlements-of-all-time-as-of-december-2023/.

Editors: Please note that any citation of statistics contained within the report should be attributed, in full, to “ISS Securities Class Action Services.”

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Media Contact:
Corey Whipple
Analyst, Communications
Press@issgovernance.com