Record High Median Securities Class Action Settlement Amount Amid Slower Settlement Activity in 2025

Elevated median settlement amount partially driven by larger settlements in Securities Act of 1933-only cases.

NEW YORK, Feb. 19, 2026 /PRNewswire/ -- The median settlement amount in securities class actions reached a nearly three-decade high of $17.3 million in 2025, while the total number of settlements declined, according to a report released today by Cornerstone Research.

The report, Securities Class Action Settlements—2025 Review and Analysis, attributes the median increase in part to cases that only involve claims under the Securities Act of 1933, which arise from alleged misstatements or omissions in registration statements associated with a securities offering. While '33 Act-only cases represented just 12% of settled cases in 2025, their median settlement amount more than tripled year-over-year to reach an all-time high of $32.5 million.

Median plaintiff-style damages, a proxy for the potential losses investors may claim in a securities class action with Rule10b-5 claims were essentially unchanged from 2024, while median statutory damages in '33 Act-only cases declined 19%.

"The median settlement amount reached the highest level since 1997, due in part to larger '33 Act only settlements," said Dr. Laarni T. Bulan, a report co-author and vice president at Cornerstone Research. "The '33 Act-only cases were associated with a record high median number of docket entries—a proxy for the time and effort expended by the litigants and/or case complexity, factors that could explain these larger settlements." 

The higher median settlement amount is also consistent with a year-over-year decline in the number of special purpose acquisition company (SPAC)-related settlements. In 2024 and 2025, SPAC-related cases typically settled for smaller amounts than non-SPAC cases.

The average settlement amount decreased 7%, in part due to mega settlements—defined as settlements of $100 million or more—that were smaller compared to past years.

"We also observe a shift of settlement dollars from the Health Care and Financials/Real Estate sectors to the Communication Services/Information Technology sectors in recent years that may reflect changes in case filing trends," added Eric Tam, a report co-author and principal at Cornerstone Research.

Key Findings

• By the numbers: In 2025, there were seventy-four securities class action settlements totaling $3.0 billion, including nine '33 Act-only cases and nine SPAC-related settlements.
• Time to settlement remained elevated: The median duration from case filing to settlement hearing was three and a half years and continues to be historically elevated, in line with the median in 2023-2024.
• Industry exposure continues to shift: While the Health Care and Financials/Real Estate sectors had the largest aggregate settlement dollars and number of mega settlements during 2016-2020, the Communication Services/Information Technology sectors took the lead in the most recent five-year period.
• Institutional investors remain associated with larger settlements: Institutional investors continue to be involved as lead or co-lead plaintiff in cases with larger plaintiff-style damages and issuer defendant assets.
• Defendant firms were smaller on average: Defendant firms involved in 2025 settlements were 9% smaller as measured by median total assets, which reached an eight-year low.
• More cases settled at earlier case stage: In 2025, 54% of settlements occurred prior to the filing of a motion for class certification, up from 48% in 2024 and equal to the 2016–2024 average.

Read the full report here. 

About Cornerstone Research
Cornerstone Research provides economic and financial consulting and expert testimony in all phases of complex disputes and regulatory investigations. The firm works with an extensive network of prominent academics and industry practitioners to identify the best-qualified expert for each assignment. With a reputation for high quality and effectiveness, Cornerstone Research has consistently delivered rigorous, state-of-the-art analysis since 1989. The firm has more than 1,000 professionals in nine offices across the United States, UK, and EU.

SOURCE Cornerstone Research