Overall numbers of securities class actions filed in the first half of 2025 are in line with last year, but artificial intelligence- and cryptocurrency-related filings are on the rise.
According to a report by Cornerstone Research in collaboration with the Stanford Law School, there were 12 AI-related securities class actions filed in the first six months of 2025. This is on pace to the total of 15 for all of 2024.
“ChatGPT explains the increase in AI-related securities litigation,” said Joseph Grendfest, Stanford Law Professor and former commissioner of the U.S. Securities and Exchange Commission. The increase was driving by accusations of AI washing—claims from investors that companies “exaggerate, misrepresent, or falsify the extent or significance of their AI capabilities to investors and the public. This often results in legal claims when the truth is revealed and investors suffer losses.”
Like AI, crypto-related filings during the first half 2025 nearly equaled the amount for all of 2024. There were six crypto-related filings in the first half this year, and there were seven of this type of case filed for all of 2024.
The report, “Securities Class Action Filings—2025 Midyear Assessment,” found filings overall have been were steady. Plaintiffs filed 114 securities class actions in H1 2025 versus 115 for the same period in 2024. What Cornerstone terms as “core” filings—those excluding M&A filings—were 111 for the first six months of this year compared with 112 last year.
Nevertheless, the Disclosure Dollar Loss (DDL) Index reached $403 billion in the first half, a 56% increase from a year ago during the same time, and the highest semiannual total since the record-high set in 2022 H1.
Cornerstone defines DDL as the dollar-value change in the defendant firm’s market capitalization between the trading day immediately preceding the end of the class period and the trading day immediately following the end of the class period.
The Maximum Dollar Loss (MDL) Index increased to $1,851 billion in H1, a 154% increase from the first half of 2024. The first half of 2025 was the eighth straight semiannual period that the MDL was above the historical average of $622 billion. MDL measure the change from the defendant’s highest market cap during the class action to the trading day after the class period.
Topics Lawsuits InsurTech Data Driven Artificial Intelligence
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