The total value of settlements in securities class-action lawsuits involving accounting allegations soared in 2022, to $1.4 billion, a new report revealed Wednesday.
That's a 67% increase from $817 million in 2021, according to Cornerstone Research's "
Driving the increase were a jump in the average settlement amount — from $24.7 million to $31.7 million — and a 30% increase in the number of settled cases — from 33 to 43. The report also noted that the median settlement amount jumped 91%, to $15.5 million.
"Last year's near record increase in the median settlement amount reflects a broad shift in the size of accounting case settlements," said Laura Simmons, a report coauthor and a Cornerstone Research senior advisor, in a statement. "This is a function of both unusually large issuer defendants in accounting cases settled in 2022, as well as an increase in the proxy for potential shareholder losses."
Reflecting that, last year there were three "mega" accounting cases — those worth $100 million or more — versus only one in 2021.
Cornerstone's report pointed out that accounting cases took longer to settle in 2022, averaging 3.7 years, against 3.2 years in 2021.
Overall, the increase in the value of accounting-related settlements played a major role in driving up the median value of all securities class-action settlements, which rose 22% in 2022 according to Cornerstone's "
