Amid an increase in lawsuits involving artificial intelligence-related claims, the volume of U.S. securities class action filings rose in 2024, according to a new report from Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse.
Overall, there were 225 class actions filed in federal and state courts last year, up from 215 filings in 2023, the report said.
Excluding cases that involve allegations involving mergers and acquisitions, here were 220 so-called “core” class action filings in 2024, which the report noted, was higher than the historical average of 193 “core” filings.
The second annual increase in overall class actions came amid a jump in AI-related cases, which more than doubled to 15 cases in 2024 from seven cases the previous year.
Of last year’s AI-driven filings, there were eight cases against tech sector companies, four in the communications sector, two filings involving the industrial sector, and one in the consumer sector.
Additionally, the report noted that the number of pandemic-related filings was up in 2024, while claims involving SPACs (shell company deals), crypto, and cybersecurity, all declined during the year.
And, with the new U.S. government explicitly supporting the crypto sector, and promising to develop industry-friendly regulation, the future of crypto-related securities remains a major question.
“Prospectively, crypto is the elephant in the room,” said Joseph Grundfest, professor emeritus at Stanford Law School, in a release.
“How will the statutes and regulations be reformed? If much of crypto is redefined as not constituting a security, then securities litigation in that sector will obviously plummet. Stay tuned, is about all one can say,” he said.