2018 is set to outpace 2017 in terms of U.S. securities class action settlements, according to a report released Tuesday by Securities Class Action Services LLC, a subsidiary of Rockville, Md.-based Institutional Shareholder Services (ISS).
There were 162 securities class action settlements approved in the U.S. in 2017, resulting in US$2.1 billion in settlement funds for distribution to investors.
“While the volume of approved settlements worth greater than US$100 million each was low, the number of new cases filed in 2017 was significantly higher than the previous year,” ISS says in a news release.
2018 is set to surpass last year in terms of class action settlements. “Underscoring the year-to-year ebb and flow in the value of U.S. class action settlements, a sizeable US$3.5 billion in prospective settlement funds has thus far been announced in 2018 and awaits court approval,” says Jeff Lubitz, head of ISS Securities Class Action Services, in a statement.
“Notably, one settlement announced this year would rank within the top five of all time, and so shareholders should keep a close eye on the ISS Securities Class Action Services pipeline with 2018 shaping up to be a banner year for settlements,” Lubitz adds.