Class actions remain a popular target for litigation funders as 2023 progresses, driven by developments in countries’ regulatory framework for these actions, as well as particularly active sectors such as securities litigation. A new report by Broadridge Financial Solutions has found that not only is the volume of securities class actions on the rise, but the value of settlements resulting from these cases has experienced an even more dramatic increase.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Class actions remain a popular target for litigation funders as 2023 progresses, driven by developments in countries’ regulatory framework for these actions, as well as particularly active sectors such as securities litigation. A new report by Broadridge Financial Solutions has found that not only is the volume of securities class actions on the rise, but the value of settlements resulting from these cases has experienced an even more dramatic increase.
An article by The Global Legal Post provides an overview of Broadridge’s Global Class Actions Report for 2022, which highlights the factors powering this continued growth in class action activity. Broadridge identified that whilst new securities class action filings have yet to reach their pre-pandemic levels, 2022 saw an increase of 22% for a total of 160 individual filings, and the total value of settlements increasing by 142% to reach over $7.4 billion.
Broadridge put the spotlight on both cryptocurrency and ESG-related litigation as drivers for growth, as well as the evolution of legislation around the process for opt-in class actions, such as the EU’s Representative Action Directive. This has also been supplemented by countries looking to develop new regulatory structures for the involvement of litigation funders in class action litigation, including New Zealand and Singapore, where the involvement of funders has been a key consideration.
