2024 Securities Class Action Trends – Key Insights from NERA’s Latest Year in Review

Feb 16, 2025 | KLF Blog

Securities class action trends are dynamic, and the latest report from NERA Economic Consulting, “Recent Trends in Securities Class Action Litigation: 2024 Full-Year Review,” provides a comprehensive look at the evolving landscape of securities litigation.

With more than three decades of data and analysis behind them, the experts at NERA offer fresh insights into the state of securities class actions in 2024, including changes in filing, dismissal, and settlement trends.

Securities Class Action Trends Show A Stable Filing Environment

In 2024, the number of new federal securities class action suits filed remained consistent with the previous year, with 229 cases, mirroring the 229 filings recorded in 2023. This signals that, despite fluctuating market conditions, the filing rate for securities class actions has held steady in recent years.

One notable trend from the report is the concentration of filings within two key sectors: technology and healthcare.

These industries combined accounted for more than half of all securities class actions filed in 2024. This reflects the continued prominence of these sectors in the broader market. Additionally, the report highlights a significant geographical concentration, with 61% of cases filed within the Second and Ninth Circuits, which encompass key financial markets such as New York and California.

New Allegations Shaping Securities Class Action Trends in 2024

The nature of the claims brought forward in 2024’s securities class actions reveals some noteworthy shifts. Of the 229 cases filed, 41% involved allegations related to missed earnings guidance, while only 8% centered around merger-integration issues. This continues the trend of earnings guidance-related cases dominating the landscape.

Perhaps the most striking developments in 2024 were the significant increases in AI- and COVID-related claims. AI-related securities cases more than doubled, with 13 new lawsuits filed in 2024 compared to just a few in the previous year.

Similarly, COVID-related claims saw a 46% jump from 2023, with 19 cases filed. These numbers indicate that evolving market trends, particularly the explosive growth of AI and the lingering effects of the COVID-19 pandemic, are making their mark on the securities class action space.

On the other hand, the once-bustling arenas of cryptocurrency and SPAC (Special Purpose Acquisition Company) litigation have continued their decline. Only eight crypto-related cases and nine SPAC-related suits were filed in 2024, underscoring the fading intensity of legal action in these areas after their peak years.

A Resurgence in Case Resolutions

After a six-year decline, resolutions of securities class actions saw a 17% increase in 2024, with a total of 217 cases resolved. The breakdown of resolutions included 124 dismissals and 93 settlements. Notably, the rise in dismissals was the primary driver behind this increase, particularly cases involving Rule 10b-5, Section 11, and Section 12 claims.

This shift towards dismissals could signal a more challenging litigation environment for plaintiffs, as courts become more selective in the cases they allow to move forward. However, settlements continue to play a significant role in resolving these cases, with aggregate settlements totaling $3.8 billion in 2024. The largest 10 settlements accounted for about 60% of this total, further emphasizing the concentration of financial resolution in a small number of high-profile cases.

Investor Losses and Legal Fees

2024 also saw a sharp rise in investor losses, with the median investor loss reaching $1.76 billion—the highest recorded in the last decade. This reflects the ongoing volatility in the markets and the high stakes involved in these lawsuits.

In parallel, plaintiffs’ attorneys’ fees and expenses also saw a notable increase, totaling $1.06 billion in 2024, nearly $90 million more than in 2023. The growth in legal fees is a direct result of the complexity and scale of the cases being litigated, particularly those involving large-scale corporate disputes and high investor losses.

The Future of Securities Class Action Trends – Looking Ahead

NERA’s 2024 Full-Year Review provides a snapshot of the current state of securities class action litigation, offering valuable insights into the evolving trends in the industry.

As technology, healthcare, and other emerging sectors continue to dominate the market, we can expect the nature of securities litigation to evolve alongside these changes. The rise of AI-related and COVID-related claims will likely be a continuing theme, while sectors like cryptocurrency and SPACs might see less activity going forward.

For professionals in the field of securities litigation, these findings highlight the importance of staying ahead of the curve in terms of strategy and understanding the dynamics that drive filings and resolutions.

This KLF blog post is designed to present the key points from the NERA report in a way that’s digestible and engaging for readers.

Please click here to see the full NERA report. 

Questions About Securities Class Actions?

Investors and shareholders who have questions about class action lawsuits are encouraged to send us a message or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], [email protected].

About Kehoe Law Firm, P.C. 

Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side class action law firm dedicated to protecting investors from securities fraud, breaches of fiduciary duties, and corporate misconduct.  Combined, the partners at Kehoe Law Firm, P.C. have served as Lead Counsel or Co-Lead Counsel in cases that have recovered more than $10 billion on behalf of institutional and individual investors.

Kehoe Law Firm’s legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

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Autodesk, Inc. – Breach of Fiduciary Duties Investigation – ADSK

Feb 16, 2025 | Investigations

Kehoe Law Firm, P.C. is investigating whether certain executive officers and directors of Autodesk, Inc. (“Autodesk” or the “Company”) (NASDAQ:ADSK) breached their fiduciary duties by failing to manage Autodesk in an acceptable manner and whether Autodesk and its shareholders were harmed as a result.

Key Issues of the Breach of Fiduciary Duties Investigation

On April 1, 2024, Autodesk announced that it was “. . . unable to file its Annual Report on Form 10-K for the year ended January 31, 2024 . . . within the prescribed time period, without unreasonable effort or expense.”

Further, the Company stated that “[a]fter the Company’s earnings release on February 29, 2024, information was brought to the attention of management, which promptly informed the Audit Committee . . . of the Board of Directors of the Company, that caused the Committee to commence an internal investigation with the assistance of outside counsel and advisors, regarding the Company’s free cash flow and non-GAAP operating margin practices.”

On April 16, 2024, Autodesk announced it would “. . . not file its Annual Report on Form 10-K for the year ended January 31, 2024 . . . within the 15-day extension period contemplated by Rule 12b-25(b) under the Securities Exchange Act of 1934, as amended, due to the ongoing investigation. Accordingly, the Company expects to receive a notice from The Nasdaq Stock Market . . . that it is not in compliance with the timely filing requirement for continued listing under Nasdaq Listing Rule 5250(c)(1).”

On April 25, 2024, Autodesk reported that “[o]n April 19, 2024, the Company received a notice . . . from The Nasdaq Stock Market LLC . . . notifying the Company that, because [Autodesk] is delinquent in filing its Form 10-K, the Company no longer complies with Nasdaq Listing Rule 5250(c)(1) . . ., which requires companies with securities listed on Nasdaq to timely file all required periodic reports with the SEC.”

On June 3, 2024, Autodesk announced that it had reassigned its Chief Financial Officer (“CFO”), after an internal accounting investigation around treatment of its free cash flow and operating margins.

Autodesk also “. . . disclosed its practice of incentivizing customers to adopt multiyear upfront billing arrangements. It has also acknowledged that discounted multiyear upfront contracts reduce revenue and lower billings in out years. Though prior to fiscal year 2024, the company did not quantify free cash flow attributable to multiyear upfront billings, it has noted the contribution of upfront collections to fluctuations in the company’s quarterly reported long-term deferred revenue.”

Investors of Autodesk Stock: Learn More About the Investigation and Your Legal Options 

If you are an Autodesk investor and want to learn more about the investigation or discuss potential legal claims, please send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation legal evaluation.

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors.

Our firm litigates securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

Kehoe Law Firm’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

 

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Kehoe Law Firm, P.C.
2001 Market Street
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Philadelphia, PA 19103

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KLF’s Clients Appointed Co-Lead Plaintiffs in CVS Health Corporation Securities Class Action

Feb 12, 2025 | News

On December 5, 2024, KLF’s clients, the Southeastern Pennsylvania Transportation Authority (“SEPTA”) and the City of Miami Firefighters’ and Police Officers’ Retirement Trust (“Miami”), along with another public pension fund, were appointed co-lead plaintiffs in the securities class action against CVS Health Corporation (“CVS”).

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The class action lawsuit is pending in the United States District Court for the Southern District of New York before the Honorable Judge Margaret M. Garnett.

The lawsuit alleges that between February 9, 2022, and April 30, 2024, CVS made false and misleading statements regarding its efforts to reduce overall healthcare costs and its expectations for continued growth in Medicare and Commercial membership.

The lead plaintiffs, SEPTA and Miami, plan to file a consolidated amended complaint in the coming months.

The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) the forecasts CVS used to determine plan premiums were ineffective at accounting for medical cost trends and health care utilization patterns; (ii) as a result, CVS was likely to incur significant expenses to cover cost increases that were not accounted for in the Company’s forecasts and thus not covered by plan premiums; (iii) accordingly, CVS had overstated the profitability of its Health Care Benefits segment; (iv) contrary to Defendants’ assurances, the revenues generated from the Company’s other primary segments were insufficient to offset the negative financial impact of the increasing expenditures within the Health Care Benefits segment; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.

Questions About the CVS Securities Class Action Lawsuit?

CVS investors with questions about the class action lawsuit are encouraged to send us a message or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], [email protected].

About Kehoe Law Firm, P.C. 

Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side class action law firm dedicated to protecting investors from securities fraud, breaches of fiduciary duties, and corporate misconduct.  Combined, the partners at Kehoe Law Firm, P.C. have served as Lead Counsel or Co-Lead Counsel in cases that have recovered more than $10 billion on behalf of institutional and individual investors.

Kehoe Law Firm’s legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

SEND US A MESSAGE

Contact Us

ADDRESS

Kehoe Law Firm, P.C.
2001 Market Street
Suite 2500
Philadelphia, PA 19103

PHONE

Tel: 215-792-6676

EMAIL

[email protected]

Class Action Filed on Behalf of Participants in the Home Depot FutureBuilder Employee Benefit Plan

Feb 12, 2025 | News

On August 26, 2024, KLF, in partnership with its co-counsel, filed a class action lawsuit in United States District Court, Northern District of Georgia, against Home Depot, Inc. alleging that the Administrative Committee of The Home Depot FutureBuilder employee benefit plan violated the Employee Retirement Income Security Act (ERISA).

The class action claims that the Administrative Committee failed to act in the best interests of plan participants by using unvested portions of participants’ accounts—commonly referred to as “forfeitures”—to offset the company’s own contributions rather than applying these funds to reduce plan expenses for participants.

The Home Depot Defendants filed a motion to dismiss the complaint, claiming that they have not violated the provisions of ERISA.  The briefing is complete, and the motion is currently pending before the Court.

Please click 2023 Home Depot FutureBuilder Form 5500 Annual Return/Report of Employee Benefit Plan for more information about the employee benefit plan.

Questions About the Home Depot FutureBuilder ERISA Lawsuit?

If you are a participant in the Home Depot FutureBuilder employee benefit plan and have questions or concerns about the lawsuit or your legal options, please contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected] for a free, no-obligation evaluation of potential legal claims.

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff-side class action law firm specializing in securities fraud, breaches of fiduciary duties, and corporate misconduct. The firm’s partners have collectively served as Lead Counsel or Co-Lead Counsel in high-profile cases, recovering over $10 billion for institutional and individual investors.

 

KLF Secures Significant Settlement from Dollar Tree Defendants

Feb 11, 2025 | News

Kehoe Law Firm, P.C. and its co-counsel successfully secured a derivative settlement with the Dollar Tree Defendants in 2024, addressing critical product and workplace safety failures at Dollar Tree and its subsidiary, Family Dollar.

Following months of negotiations, the settlement resulted in significant corporate governance reforms, including enhanced Board-level oversight of safety measures through quarterly and semi-annual reporting and the creation of a Chief Compliance Officer position.

Michael Yarnoff, a Partner at Kehoe Law Firm, emphasized the importance of these reforms, stating, “Dollar Tree’s reforms will help protect the company from substantial liability, such as the recent $42 million fine and guilty plea by Family Dollar for food safety violations at its warehouses. These long-overdue changes will strengthen the company’s commitment to safety and compliance.”

Questions About the Settlement?

Please address any questions or concerns about the settlement or the litigation to Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected].

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff-side class action law firm specializing in securities fraud, breaches of fiduciary duties, and corporate misconduct. The firm’s partners have collectively served as Lead Counsel or Co-Lead Counsel in high-profile cases, recovering over $10 billion for institutional and individual investors.