Securities Class Action Filings Remain Steady While Size of Filings Increased Substantially in First Half of 2025

Artificial intelligence-related filings on pace to far exceed 2024 total.

MENLO PARK, Calif., July 30, 2025 /PRNewswire/ -- The number of securities class action filings in the first half of 2025 remained steady in comparison to the second half of 2024 but the overall size of filings increased considerably, according to a report released today by Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse.

The report, Securities Class Action Filings—2025 Midyear Assessment, found that plaintiffs filed 114 securities class actions in federal and state courts in the first half of 2025, virtually the same as the 115 class actions filed in the second half of 2024. Core filings—those excluding M&A filings—totaled 111 in the first half of 2025, closely mirroring the 112 core filings in the second half of 2024, while exceeding the historical semiannual average of 97. Notably, there was a significant uptick in artificial intelligence (AI)-related filings, with 12 cases filed in the first half of 2025, putting this category on track to surpass the 2024 yearly total of 15. Cryptocurrency-related filings are poised to increase, while COVID-19-related filings are on pace to decline sharply.

"While overall filing volume was steady, filings were notably front-loaded in 2025 H1, with 67 in Q1 versus 47 in Q2—a reversal from 2024 where Q2 was higher than Q1," said Alexander "Sasha" Aganin, the report's coauthor and a Cornerstone Research senior vice president, who coheads the firm's finance practices. "In addition to the continued rise in AI-related filings and cryptocurrency-related filings, the annualized number of SPAC-related filings is on pace to nearly match that of 2024."

The Disclosure Dollar Loss (DDL) Index™ reached $403 billion in 2025 H1, a 56% increase from 2024 H2, and the highest semiannual total since the record-high set in 2022 H1. The Maximum Dollar Loss (MDL) Index™ increased to $1,851 billion in 2025 H1, a 154% increase from 2024 H2, and marked the eighth consecutive semiannual period with MDL above the historical average of $622 billion.

"The big news in these trends are the dollars at risk and AI. For investors, the claims' dollar value can be far more important than the number of companies sued. 'Mega-litigation'—big claims against big companies—is key," according to Stanford Law Professor and former SEC Commissioner Joseph Grundfest. "ChatGPT explains the increase in AI-related securities litigation as 'primarily driven by the phenomenon known as "AI washing"—where companies exaggerate, misrepresent, or falsify the extent or significance of their AI capabilities to investors and the public. This often results in legal claims when the truth is revealed and investors suffer losses.' I have nothing else to add to this AI explanation of AI litigation."

Additional Key Trends

• The number of filings in the Consumer Non-Cyclical sector increased by 31% in 2025 H1 relative to 2024 H2, largely driven by a surge in Biotechnology and Pharmaceutical filings.
• Mega filings accounted for the vast majority of total MDL and total DDL (91% and 83%, respectively), significantly above the 1997–2024 semiannual averages.
• The count of mega DDL filings (15) in 2025 H1 was three times the 1997–2024 semiannual average (five) and between the number of mega DDL filings in 2024 H2 (17) and 2024 H1 (10).
• The number of core filings in the Second and Ninth Circuits decreased by nearly one-fifth from 2024 H2 to 2025 H1 but still accounted for 69% of total DDL.
• The likelihood of a core filing against a U.S. exchange-listed company is on pace to decrease slightly to an annualized rate of 3.8%.
• Core federal filings against non-U.S. issuers as a percentage of total core federal filings in 2025 H1 was 11%, reaching a 15-year low.

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.

About the Stanford Law School Securities Class Action Clearinghouse
The Securities Class Action Clearinghouse is an authoritative source of data and analysis on the financial and economic characteristics of federal securities fraud class action litigation. The SCAC maintains a database of more than 6,800 securities class action lawsuits filed since the passage of the Private Securities Litigation Reform Act of 1995. The database also contains copies of complaints, briefs, filings, and other litigation-related materials filed in these cases.

SOURCE Cornerstone Research