BETHESDA, Md., Jan. 9, 2026 /PRNewswire/ — Today, Securities Analytics Research (SAR) published the Securities Class Action Rule 10b-5 Exposure Report for 4Q 2025. According to the report, market capitalization losses alleged to be fraud-related against directors and officers of defendant U.S. public companies sued during the fourth quarter, amount to $105.7 billion. This marks a quarterly decline of 48% in alleged market capitalization losses. During the preceding six months, investor plaintiffs have claimed approx. $307.7 billion in market capitalization losses stemming from alleged violations of Rule 10b-5.
According to the report, market capitalization losses claimed against issuers declined by 59%, or $441.6 billion, during the second half of 2025 compared to the first. The decline was driven by lower frequency of securities class action filings and a lower sample of corporate disclosures claiming to expose securities fraud. During the first half of 2025, investor plaintiffs claimed losses on 163 corporate disclosures, compared to 109 during the second half.
“Despite the decline in filing frequency and a lower count of alleged fraud-revealing corporate disclosures in 4Q, market capitalization losses per Rule 10b-5 claim and alleged stock drop remained relatively stable,” said Stephen Sigrist, SVP at SAR.
According to SAR, investor plaintiffs have claimed $3.7 and $4.1 billion in market capitalization losses per Rule 10b-5 class action against U.S. issuers in 3Q and 4Q 2025, respectively. During the salient period, shareholders alleged $2.4 and $2.3 billion in market capitalization losses per stock drop in 3Q and 4Q 2025, respectively.
Thus far, settlement data indicate that during the second half of 2025, shareholders have reached settlements in 20 private Rule 10b-5 securities class actions amounting to $856 million, with an average settlement of $42.8 million – which represents an increase in the average settlement value of approx. 95% relative to the first half of 2025.
“Investor plaintiffs spent greater effort doubling private securities-fraud litigation settlements during the second half of the year than filing new lawsuits. Average Rule 10b-5 settlements have doubled and now exceed $40 million per suit,” said Nessim Mezrahi, Co-Founder and CEO at SAR.
Key takeaways during the second half of 2025:
- Alleged market capitalization losses of U.S. and non-U.S. issuers amount to $307.7 billion during H2 2025, a decline of 59% from H1 2025.
- Despite the decline in filing frequency and alleged market capitalization losses during the second half, 2025 saw the highest-yet market capitalization losses claimed against U.S. public companies, which amount to over one trillion dollars.
- Average settlement amounts in Rule 10b-5 private securities-fraud class actions nearly doubled in the latter half of 2025 relative to the first, amounting to approximately $42.8 million.
- Average market capitalization losses per Rule 10b-5 claim and per alleged corporate disclosure were $4.6 billion and $2.8 billion, respectively. Both metrics are higher relative to either semi-annual period in 2024.
- Bernstein Litowitz Berger & Grossman LLP ranked as the top performing securities class action plaintiff firm based on the frequency of lead plaintiff appointments and the value of cumulative settlements since 2018. The firm has the highest average settlement in private Rule 10b-5 securities-fraud litigation, at $94.1 million.
About Securities Analytics Research (SAR): SAR LLC is a specialized data analytics company focused on securities litigation risk management analytics of U.S. public companies, founded in 2018 and based in Bethesda, MD. Through the SAR Platform®, users license verifiably independent and high-quality data analytics based on near real-time stock price performance in response to public companies’ corporate disclosures. SAR is the developer and publisher of the SAR Risk Score®, which is assigned to issuers that trade on the NYSE or NASDAQ at the close of trading. SAR applies the court-approved event study methodology to test stock price reaction on the universe of corporate disclosures to accurately estimate the probability and magnitude of securities litigation risk impacting directors and officers. SAR provides verifiably independent securities class action settlement valuations as evidentiary support in mediated negotiations that resolve securities claims that allege violations of the federal securities laws under the Exchange Act of 1934 and Securities Act of 1933. The company is committed to the verifiable independence and accuracy of the licensed data and has been publishing quarterly statistical back-testing results since 2018. SAR does not rely on artificial intelligence (AI) or machine learning (ML) and operates in accordance with documented standard operating procedures with assigned process owners to ensure independent, human accountability. The company does not engage in economic consulting, nor places capital at risk on behalf of investors or insurers. SAR does not actively trade, hold, or intend to hold positions on the universe of equity issuances listed on the NYSE or NASDAQ, and whose principals and full-time professionals are restricted from actively trading.
Contact information: info@sarlit.com
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SOURCE SAR
