The Southern District of New York has retained its position as the primary hotspot for federal securities litigation in the United States, according to a recent report from legal tech company Lex Machina. However, the study also revealed that the overall numbers of such cases have been experiencing a marked decline around the country from 2021 to 2023.
Amid the bustling deal environment of 2021, securities litigation case filings reached an apex, with a total of 2,647 cases. The volume dropped to 1,937 in 2022 and further plunged to 1,758 in 2023. This equates to the lowest tally of new filings since the year 2017, as per Lex Machina’s findings.
Furthermore, a sustained activity was observed in multiple jurisdictions other than New York’s Southern District. Notably, Delaware followed closely in the second position, while the Brooklyn-based Eastern District and the Northern District of California stood third and fourth respectively.