Gallagher: Securities Class-Action Settlement Dollars Up $48% in H1

For the first half of 2026, when it comes to securities class actions, the plaintiffs bar is winning, according to Gallagher.

In a new report on the lawsuits targeting directors and officers, Gallagher said total settlement dollars increased sharply. After six months, settlements totaled $2.1 billion, a 48% increase over the same period last year. There were 48 settlements compared with 41 in H1 2025.

Of the settlements in H1 2026, 21% were greater than $50 million, Gallagher reported. Two of the top settlements were Goldman Sachs for $500 million over allegations of oversight and misappropriations, and Estee Lauder’s $210 million settlement to end allegations of misrepresenting revenue growth.

However, nearly half of securities class-action cases during H1 2026 were against the technology and biotechnology industries. The duo also led the most targeted industries a year ago.

Gallagher noted more cases filed have to do with a business’s investment in artificial intelligence. AI was involved in 13% of SCAs, which doubled last year’s proportion. “As more public companies integrate AI into their growth strategies, AI-related allegations tied to revenue growth are now more common in securities class-action cases,” Gallagher said.

Other areas of focus were IPO companies, pump-and-dump schemes, SPACs merging with private companies, and companies with foreign headquarters.

During the first half, plaintiffs filed 113 securities class-action lawsuits, a 10% increase from a year ago. However, Gallagher said, filings remain on pace to be near the 10-year annual average. SCA filings tend to slow down in the second half of the year.

Gallagher said it is monitoring older cases yet to be resolved that involve sizable companies. “The pipeline has plenty of cases capable of producing large settlements,” Gallagher said.

Topics Lawsuits A.J. Gallagher