Securities Litigation Surges 20% in 2025, Targeting Finance, Tech, and More
Securities litigation is on the rise, with a 20% increase since 2022, totaling 229 federal class actions this year. Companies across various sectors, particularly finance, healthcare, technology, consumer goods, and retail, face increasing legal challenges. Greenwashing and board diversity issues have emerged as new grounds for lawsuits.
The 5th U.S. Circuit Court of Appeals recently ruled that NASDAQ overstepped its authority by mandating certain board disclosures. This ruling highlights the evolving landscape of securities litigation.
Historically, financial institutions have been frequent targets. JPMorgan Chase and Bank of America faced lawsuits due to their roles in the financial crisis. Wells Fargo was pursued for deceptive practices. In healthcare, Purdue Pharma and other opioid manufacturers, along with Johnson & Johnson, have been sued over product safety and misinformation.
Technology giants like Facebook (now Meta) and Apple have also faced litigation, with issues ranging from data privacy breaches to alleged monopolistic behavior. Consumer goods and retail companies, such as Toyota, Volkswagen, and Amazon, have been sued for product defects, emissions cheating, and unfair business practices.
Retailers, though targeted less frequently, are seeing a growing number of cases. Even uncontrollable events like cyberattacks or wildfires can spark securities lawsuits. Statements made at industry conferences or interviews can also lead to litigation. The number of claims resulting in lawsuits has risen between 20% and 40% over the past decade.
Compliance failures, restatements, and inaccuracies remain central to securities cases, with emerging grounds from ESG and DEI policies. Recent executive orders and agency interpretations may further impact securities litigation. Companies must stay vigilant and adapt to these shifting legal landscapes to mitigate risks.
