Record Settlement Volume Driven by SPAC Litigation, While Settlement Values Fall Sharply

Report details settlement trends in Delaware M&A litigation

NEW YORK, Sept. 23, 2026 /PRNewswire/ -- The number of settlements in litigation related to mergers and acquisitions (M&A) in the Delaware Chancery Court reached 25 last year, its highest level since 2012. However, aggregate settlement amounts declined to $326.6 million, down significantly from the 2023 inflation-adjusted peak of $734.8 million, according to a new Cornerstone Research report released today.

The report, M&A Litigation Settlements in the Delaware Court of Chancery: 2012–2025 Review and Analysis, is based on a hand-collected sample of 143 settlements with known monetary amounts over the 14-year period. It documents a significant drop-off in settlement values in 2025.

In addition to the dip in aggregate settlement amounts, the median settlement in 2025 fell to $10 million, the lowest recorded over the period analyzed. The median settlement amount as a percentage of transaction value also declined, continuing a multi-year downward trend.

"The data point to a number of factors behind the declining settlement amounts in 2025, most notably the surge in litigation over special purpose acquisition companies (SPACs), which tend to involve lower claimed damages," said Senior Vice President Frank Schneider, a report coauthor and Cohead of Cornerstone's Valuation, M&A, and Bankruptcy Practice. "Because the SPAC cases at issue tended to involve more modest claims, settlements were smaller. Compounding that trend, settlement values in non-SPAC cases fell as well."

All 2025 settlement amounts were below $50 million, and 80% were below $20 million. In comparison, only 42% of settlements between 2020 and 2024 were below $20 million.

"Based on the sample of 143 settlements, we observe that larger transactions and transactions with larger claimed damages have on average higher settlement amounts and these relationships are statistically significant," said Vice President Paul Zurek, Cohead of Cornerstone's Valuation, M&A, and Bankruptcy Practice and report coauthor.

The report found a strong correlation between claimed damages and settlement outcomes. Claimed damages explain 71% of the variation in settlement amounts, with a 10% increase in damages associated with a 6.4% increase in settlement amount. At the same time, the settlement amount as a percentage of claimed damages tends to decline as the claim size grows, from a 44.0% median for claims under $25 million (2025) to just 2.2% for claims over $1 billion (2020–2024).

Additional Key Findings:

• Surge in SPAC settlements: Litigation related to de-SPAC transactions accounted for 68% of 2025 settlements and 53% of the year's aggregate settlement value. The average settlement in SPAC litigation in 2025 was $10.1 million (median $8.8 million).
  
  
• Settlement value of traditional M&A litigation falls: The value of non-SPAC settlements in 2025—an average of $19.4 million and a median of $14.6 million—was down from 2024, when the average and median were $41.5 million and $24.1 million, respectively.
  
  
• Falling settlement amounts as a percentage of transaction value: Transaction value was positively correlated with settlement amounts. But the median settlement as a percentage of transaction value fell to 0.5% in 2025, continuing a downward trajectory from the 2020 high of 3.9%.
  
  
• Shift in plaintiff profile: In 2025, 72% of settlements involved stockholders of the acquirer (mostly SPAC stockholders), a sharp increase from the 29% observed between 2020 and 2024.
  
  
• Counsel fees trending down: Median and average plaintiff counsel fees reached their lowest levels in 2025, driven by smaller settlement amounts and a decrease in the percentage of the settlement awarded as fees.

About Cornerstone Research

Cornerstone Research is at the forefront of economic and financial consulting, delivering the rigorous analytical solutions required to navigate complex disputes. The firm draws from an extensive network of prominent academic and industry experts to support each matter effectively. Pairing a deep understanding of economics and finance with a suite of industry-leading artificial intelligence and machine learning tools, Cornerstone provides clients with a sophisticated, tailored approach. A reputation for innovation, precision, and excellence has defined Cornerstone since 1989. That momentum continues with over 1,000 professionals collaborating across nine offices in the US, UK, and EU. Learn more at https://www.cornerstone.com/.

SOURCE Cornerstone Research