In recent years, it appears that the number of opt-outs in securities class action settlements have been on the rise, especially in cases that are large and complex. In a recent report by Cornerstone Research in partnership with Latham & Watkins LLP, it was noted that between the years of 2019 and the first half of 2022, the rate of these settlements that included at least one opting-out member had increased to 11.5%, according to JD Supra.
To provide some historical context, this figure stood at approximately 5.8% from 2006 to 2018, and just 2.9% during the decade spanning from 1996 through to 2005. This suggests a clear trend of a rising number of opt-outs in securities class action settlements over the past few decades.
This report generates some questions about the driving forces behind the increase in opt-outs in these settlements. It also raises inquiries about what this trend may pertain for the future of securities class action lawsuits. Legal professionals and interested parties are encouraged to see the full insight for more comprehensive information.
As additional data is gathered and as future developments occur, it’s likely this topic will continue to unfold. Thus, it’s considered an area of interest for those in securities law and class action lawsuits. The findings of this report are noteworthy for legal professionals, especially those operating in large corporations and law firms, to be aware of this trend and its potential implications.