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D&O Market Update
Rates for Public Companies
Securities Class Action Filing Activity in 1H 2025 Slightly Down Compared to 1H 2024
Securities Class Action Filing Activity Is Slightly Down Compared to 2024
In the first half of 2025, there have been 100 securities class action suits filed, which is slightly lower than the 104 suits filed in 1H 2024. The first quarter of this year was robust with 61 cases, but activity dropped by 36% in Q2, bringing the first half of 2025 in line with historic norms.
Security Class Actions Filed* 1H2024 vs 1H 2025
Even with quarterly fluctuations, we project 2025 will close the year with approximately 200 total cases filed. Historically, the 1H of each year accounts for 51% of cases for the year, and 2H accounts for 49%. A 200-case total at year end is squarely in line with historic outcomes as well—the five-year average is 191 cases, and the 10-year average is 204.
Technology Is Still #1 in SCA Filings
The leading industries for suits filed are technology, biotechnology, and manufacturing companies, rankings which have remained unchanged since 2021. In 1H 2025, 60% of all filings were brought against technology and biotechnology companies, consistent with recent trends.
SCA Filings by Industry (1H 2025)
SCA Filings Are Evenly Distributed Across Small- to Large-Cap Companies
So far this year, filings are evenly distributed between companies in the small-, mid-, and large-cap ranges. This trend diverges from what we saw in 2023, where large caps were increasingly targeted, and 2024, where small caps saw the largest jump.
Filings by Market Cap
Lawsuits Against More Mature Companies Are on the Rise
With fewer companies going public, filing activity has naturally shifted away from IPO and SPAC/de-SPAC companies and towards more mature companies. While plaintiffs prefer to focus on companies within the three-year Section 11 window, the limited pool of new issuers has led to more suits against high-profile and brand-name companies.