2024 Securities Litigation Year in Review
Our 2024 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 2024, securities lawsuit filings remained flat from 2023 and once again reflected the highest number of filings since 2020. Settlements and dismissals rose slightly last year; there were eight mega-settlements of more than $100 million. Case filings involving COVID-19, SPACs, and cryptocurrencies and other digital assets represented 15% of all filings in 2024, up slightly from 2023. Rapid developments in the AI sector led to a substantial increase in AI-related securities suits, with 13 filings in 2024.
We discuss the Supreme Court's unanimous decision in Macquarie Infrastructure Corp. v. Moab Partners, L.P., in which the Court held that pure omissions are not actionable under Rule 10b-5(b). In another unanimous decision, Murray v. UBS Securities, LLC, the Court concluded that there is no retaliatory intent requirement for whistleblower claims under Sarbanes-Oxley. We analyze 26 decisions from the federal appellate courts addressing the pleading requirements for securities fraud cases and highlight a significant circuit split related to the SEC's proxy rules and their recent amendments.
Looking ahead, we discuss pending appeals that could result in significant decisions on class certification and the extension of the Affiliate Ute presumption of reliance to claims based on alleged "half-truths." We also address what to expect next year in the AI, ESG, and cyber sectors.
