Accounting Class Action Filings and Settlements - Executive Summary
Summary
Cornerstone Research reports that accounting-related securities class action filings fell to 34 in 2025, the lowest since tracking began, down from 57 in 2024 — a 40% decline in Disclosure Dollar Loss. Settlement values, however, increased 40% to $1.5 billion, representing over 50% of all securities class action settlement value in 2025, despite the same number of accounting case settlements as 2024 (35). The median pre-disclosure market capitalization of issuer defendants increased by over 120%, and the median settlement amount was the highest since 2022.
“The dollar value of accounting-related securities class action settlements hit a five-year high, making up more than 50% of the value for all settlements in 2025 despite no increase in the number of such settlements compared to 2024.”
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What changed
Cornerstone Research released its annual executive summary on accounting-related securities class action filings and settlements for 2025. Filings declined from 57 to 34 — the first decrease in four years — while the total Disclosure Dollar Loss fell 40%. However, settlements held steady at 35 cases but grew in aggregate value by 40% to $1.5 billion, accounting for more than half of all securities class action settlement value for the year. The median pre-disclosure market capitalization of defendant issuers increased by over 120%, and median settlement amounts reached their highest level since 2022. Asset valuation and/or impairment remained the most common GAAP violation alleged for the second consecutive year.
Public companies and their counsel should note the inverse trend: while overall filing volume contracted significantly, the size of defendants in both filings and settlements increased substantially. Companies with large market capitalizations and significant asset impairment or valuation exposures should ensure their financial reporting controls and disclosure practices can withstand scrutiny, as the cases that do proceed are increasingly against larger issuers and resulting in higher settlement amounts.
Archived snapshot
Apr 24, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
April 23, 2026
Accounting Class Action Filings and Settlements - Executive Summary
Cornerstone Research + Follow Contact LinkedIn Facebook X ;) Embed In 2025, the number of accounting-related securities class action filings fell to its lowest level since tracking began. However, these accounting cases were filed against larger issuer defendants as compared to prior years.
The dollar value of accounting-related securities class action settlements hit a five-year high, making up more than 50% of the value for all settlements in 2025 despite no increase in the number of such settlements compared to 2024.
FILINGS
The number of securities class action filings involving accounting allegations (“accounting case filings” or “accounting cases”) decreased for the first time in four years, from 57 in 2024 to 34 in 2025. 1
For the second consecutive year, asset valuation and/or impairment was the most common GAAP violation alleged in accounting cases.
The total Disclosure Dollar Loss (DDL) for accounting case filings in 2025 decreased by 40%, in line with a similar decline in the number of accounting case filings.
After a four-year decline, the median pre-disclosure market capitalization of issuer defendants increased by over 120% in 2025. 2
SETTLEMENTS
There were 35 securities class action settlements involving accounting allegations (“accounting case settlements”) in 2025, the same as in 2024. The total value of these settlements, however, increased by 40% to $1.5 billion.
As measured by median total assets and pre-disclosure market capitalization, the size of issuer defendants in accounting case settlements increased by 30% and 15%, respectively.
In 2025, the median settlement amount for accounting cases was the highest since 2022.
Nearly half of accounting case settlements that included GAAP violations related to asset valuation and/or impairment.
For more information on this topic, please see Accounting Class Action Filings and Settlements.
- Securities class actions are considered “accounting case filings” or “accounting cases” if they involve allegations made in the first identified complaint (FIC) of U.S. Generally Accepted Accounting Principles (GAAP) violations or violations of other reporting standards (collectively, “GAAP violations”), auditing violations, or weaknesses in internal controls over financial reporting. In some cases, plaintiff(s) may not have expressly referenced GAAP or other reporting standards; however, the allegations, if true, would represent violations of GAAP or other reporting standards. Details of GAAP violations have been tracked since 2019.
- “Pre-disclosure market capitalization” refers to a defendant firm’s market capitalization on the trading day immediately preceding the end of the class period. The views expressed herein are solely those of the authors and do not necessarily represent the views of Cornerstone Research.
;) ;) Report
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