Increase in SPAC and Cryptocurrency Class Actions, Decrease in M&A Class Actions
The number of global class action securities litigation settlements increased a whopping 50% in 2021 with total settlements reaching more than $3 billion, according to the recently released third annual Broadridge Class Action Report, from global Fintech leader, Broadridge Financial Solutions, Inc.
The report reveals some significant trends in the class action world that are already continuing into 2022. Among these trends, the most noteworthy include a rise in SPAC and cryptocurrency-related securities litigations, substantial reduction in M&A class action filings and an increased focus on ESG investors using securities class and collective actions as a tool for enforcing shareholder values.
Steve Cirami, Broadridge Class Actions leader, noted, “Last year we watched the number of settlements rise by a dramatic 50% as cases continue to be increasingly complex and global. The landscape continues to change dramatically, with more countries enacting class action laws. At the same time, we are now seeing more settlements involving unique and complex financial instruments, commodities and new asset classes, such as cryptocurrencies.”
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Other significant trends seen in 2021:
- The Block.one settlement, included in the list below, was one of the first cryptocurrency-related securities class action settlements.
- Growth in opt-in jurisdictions and the rise in collective investor actions.
- Increased participation in opt-in litigation.
- Broker-dealers shift in service.
In addition to identifying key trends, the third annual Broadridge Class Action Report provides an in-depth analysis of the 10 most complex class actions involving financial instruments in 2021. These important cases were selected from more than 130 new claim filing deadlines across the globe.
Top 10 Most Complex and Complicated Cases
For each of these top ten class actions, the Class Action Report includes highlights and a deeper analysis covering overview, allegations, challenges, court participants, settlement information and administrative dates.
- Snap Inc. Securities Litigation $187,500,000 (two settlements)
- Allergan Generic Drug Pricing Securities Litigation $130,000,000
- Government Bonds Antitrust Litigations $118,200,000 (combined)
- Precious Metals Antitrust Litigations (Gold and Silver Fix) $140,000,000 (combined)
- CenturyLink Securities Litigation $55,000,000
- CoreCivic Securities Litigation $56,000,000
- WageWorks Securities Litigation $30,000,000
- Willis Towers Watson Shareholder Litigation $90,000,000 (two settlements)
- E-Mini Futures Litigation $15,000,000 (partial settlement)
- Block.one Securities Litigation $27,500,000
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Report Methodology
The Broadridge Class Action Report covers important global securities and antitrust cases that involve both publicly traded financial instruments and recovery via a class action or collective redress mechanism.
Complexity is measured from a claim submission and administration standpoint based on required tasks, several include challenges related to identifying and monitoring cases, preparing claim filing data, complex loss calculation formulas, complex financial instruments, and for international cases –competing claims by multiple firms and funders, and unique jurisdictional, judicial and/or filing requirements.
This study is for informational purposes only and does not, and is not intended to, constitute investment, legal or any other advice of any kind.
Broadridge Class Action Services
Broadridge’s team of dedicated class action experts include attorneys, client advocates, class action auditors, data analysts, research professionals and client service representatives, all of whom on average have 15-20 years of class action experience. Over 850 organizations rely on Broadridge’s global class action services because of our worldwide reach, industry expertise and world-class standards. Our experts analyze and match all investment positions to identify recovery opportunities for each security relevant to every case.
Broadridge’s proprietary technology and processes—the backbone of which is our Advocacy Model—enable you to reduce risk, improve the client experience, protect customer data, and increase filing participation. Given our extensive knowledge of claims administration, global securities litigation and antitrust litigation, we know the importance of accuracy, timeliness and transparency. Our proactive approach and unique system of analysis and reconciliation ensures we do everything possible to maximize your recovery.
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