Our 2025 Securities Litigation Year in Review focuses on trends in private securities litigation and significant decisions from the U.S. Supreme Court and the federal appellate courts.
During 2025, securities lawsuit filings declined by 11% from 2024, and the 207 new filings were the lowest in a decade, other than the 204 filings in 2022. Settlements and aggregate recoveries also declined last year; there were seven mega-settlements of more than $100million, including one derivative suit settlement. AI and crypto-related case filings increased in 2025 and comprised 15% of all filings, while COVID-19 and SPAC-related filings decreased. Filings related to cybersecurity and customer privacy breach-related issues held steady. Last year included the first securities suit filings with U.S. tariff-related claims.
We discuss the Supreme Court's expected decision in F.S. Credit Opportunities v. Saba Master Fund Ltd., argued last year, in which the Court will determine whether there is a private right of action to void contracts under the Investment Company Act of 1940. We look ahead to another case to be heard by the Court this year, SEC v. Sripetch, in which the Court is asked to resolve a circuit split as to who qualifies as a victim of securities fraud and whether the SEC must prove harm to seek equitable disgorgement. We analyze 25 decisions from the federal appellate courts addressing the pleading requirements for securities fraud cases and highlight significant decisions relating to Delaware forum selection clauses, insider trading, short-swing trading, and D&O insurance coverage.
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