Author: Priya Cherian Huskins
2026 D&O Databox™ Mid-Year Report shows that securities class action filings increased in the first half of 2026 compared to the same period in 2025. But the real news is a significant increase in settlement dollars compared to the same period in 2025.
Drawing on our proprietary D&O Databox — a leading resource for securities class action data for more than 30 years — the report examines securities class action activity during the first half of 2026. The data also indicates shifts in the types of companies being sued, the allegations driving litigation and overall settlement activity.
2026 filings are tracking toward historical norms
In the first half of 2026, plaintiffs filed 113 securities class action cases. This represents a 10% increase as compared to the first half of 2025.
That said, filings remain on pace to finish near the ten-year annual average of 206 cases.
The technology sector continues to lead in securities class action filings
We've come to expect plaintiffs to target technology companies when filing securities class action suits, and the first half of 2026 did not defeat our expectations. Technology accounted for the largest share of filings, followed by biotechnology and manufacturing — a pattern that's consistent with recent years.
It's not all static, however. Filings against service companies increased, up four percentage points from 2025.
Mid-cap and mature public companies saw the most litigation
Companies with market capitalizations of $2 billion or more accounted for 61% of securities class action filings in the first half of 2026.
Within that group, the mix shifted. Compared to 2025, filings against mid-cap companies ($2 billion to $10 billion) increased 11 percentage points, while filings against large-cap companies ($10 billion or more) declined 11 percentage points.
While we have seen a good number of IPOs being filed in the last few years, the pace is still nowhere near what we saw in 2021. Thus, it's unsurprising that a greater share of lawsuits in the first half of 2026 involved more mature public companies rather than new public companies.
Specifically, companies sued in the first half of 2026 had a median market capitalization of $3 billion and had been trading on a US exchange for an average of 12 years.
Magnets for the plaintiffs' bar
Here are the areas that were in focus for the plaintiff bar in terms of securities class action filings in the first half of 2026:
- AI in business (13%)
- IPO companies (9%)
- Pump-and-dump schemes with foreign-domiciled companies listed on a US exchange (7%)
- De-SPAC transactions (7%)
- Issues involving foreign companies (26%)
Settlement dollars rose sharply in the first half of 2026
Settlement size is a zero-sum game: The plaintiffs' bar will be happy, or issuers and their insurance carriers will be happy, never both.
Plaintiffs are currently winning. Total settlement dollars in the first half of 2026 were 48% higher than the same period in 2025, with 48 settlements totaling $2.1 billion compared to 41 settlements totaling $1.1 billion.
The allegations driving the largest settlements in the first half of 2026 included misappropriation of funds or questionable business practices; production, operational and inventory problems; and clinical trial issues.
It wasn't just individual high-value settlements in play, however. Both high-value and low-value settlements increased in the first half of 2026 as compared to the same period in 2025. Bottom line: There were a lot of settlements, and the aggregate value is very large.
The data also found that the average market cap of settling companies has increased over the past five years, suggesting that larger public companies are increasingly represented among higher value settlements.
What to expect in the second half of 2026
Securities class action filings aren't expected to slow significantly in the second half of 2026. Two outcomes appear likely.
If filing activity continues at the pace of the first half of 2026, there could be approximately 226 cases filed by year-end.
That said, filing activity tends to drop off in the second half of the year. For context, the first half of the year has accounted for an average of 52% of annual securities class action filings over the past decade, compared to 48% in the second half.
Last year, filings declined 10% in the second half of 2025 compared to the first half. If that pattern repeats, we forecast approximately 200 securities class action filings in 2026.
Regardless, mature public companies with market caps exceeding $2 billion will likely continue to be targets for the remainder of 2026.
There could also be a lot more dollars flowing into plaintiff coffers in 2026. Notably, a large share of older cases are still awaiting resolution and involve sizable companies, so the pipeline has plenty of cases capable of producing large settlements.
For that reason, total settlement dollars may remain high throughout the rest of 2026.
Get the full Mid-Year Report
Get access to the Gallagher 2026 D&O Databox™ Mid-Year Report for more insights into litigation trends, settlement activity and what public companies might expect in the second half of 2026:
- Detailed filing and settlement data, including historical comparisons and benchmark statistics
- A breakdown of securities class actions by industry, market capitalization and years trading on a US exchange
- Analyses of emerging litigation trends involving AI, IPOs, de-SPACs, foreign issuers and market manipulation schemes
- Profiles of the ten largest securities class action settlements in the first half of 2026, including settlement amounts and underlying allegations
- A forward-looking analysis of filing activity and settlement severity for the remainder of 2026
