This page provides an update on the research described in Parallel Derivative Action Settlement Outcomes, incorporating more recent data. The original publication provides additional detail on the sample, methodology, and assumptions.
As shown in Cornerstone Research’s Securities Class Action Settlements—2022 Review and Analysis, 48% of securities class actions with settlement hearings between 2019 and 2022 had derivative suits with similar claims. This research update analyzes settlement outcomes for 95 of these parallel derivative actions.
- 24% of these derivative settlements included a monetary component other than plaintiff attorney fees (“monetary settlements”), while 76% included therapeutic provisions only (“non-monetary settlements”).
- The median derivative settlement was $12.0 million among monetary settlements.
- 57% of monetary settlements were settled in the Delaware Court of Chancery, the District of Delaware, or the Southern District of New York.
- The median plaintiff attorney fee award was $3.2 million among monetary settlements and approximately $590,000 among cases with therapeutic provisions only.
- Among monetary settlements, 30.4% had a corresponding SEC action, and 13.0% had corresponding criminal charges.