RT ProExec’s LaCroix: SCA filings steady in first half of 2025
By Mia MacGregor
July 7 - (The Insurer) - The pace of securities class action lawsuits in the first half of 2025 suggests a year-end total that matches the previous year's filings, according to Kevin LaCroix from RT ProExec.
In his D&O Diary blog, LaCroix reported 111 federal court securities class action lawsuit filings in the first six months of 2025, projecting an annual total of 222, equal to the 2024 total.
This figure surpasses the 213 filings in 2023 and slightly exceeds the 109 filings in the first half of 2024.
The number of SCA filings is closely tracked by directors and officers (D&O) insurers because it is a big driver of losses, as well as a factor in influencing pricing momentum.
LaCroix, who is an executive vice president at RT ProExec, a management liability division of RT Specialty, highlighted ongoing trends affecting lawsuit filings, including nine AI-related suits in the first half of 2025, compared to 15 for the entire 2024 year.
Crypto-related filings reached six in early 2025, nearing the eight recorded in full-year 2024. Additionally, SPAC-related filings numbered five in the first half of 2025, as opposed to 11 throughout 2024.
The filings spanned 50 different SIC Code categories, with 18 suits against Pharmaceutical Preparations (SIC Code 2834) leading the count. Prepackaged Software (SIC Code 7372) and Semiconductors and Related Devices (SIC Code 3674) followed closely.
Industry Groups Drugs (283) and Computer Programming and Data Processing (737) collectively accounted for 38% of the first-half filings.
Securities suits were initiated in 28 federal district courts, with the Southern District of New York seeing the highest number at 23.
Collectively, New York and California courts handled a significant portion of the first-half filings, with 31 and 21 suits respectively, according to LaCroix.
LaCroix noted a decline in merger objection class action filings, previously a major contributor to annual figures, and fewer IPO-related lawsuits due to low IPO activity since 2022.
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