Artificial intelligence disclosures, ESG accountability claims and the expansion of opt-in litigation are rapidly transforming how investors recover losses from securities class actions.
The seventh Global Class Action Annual Report from Broadridge Financial Solutions found investors recovered more than $4 billion worldwide in 2025 through securities and antitrust settlements, underscoring sustained activity despite a decline from 2024’s $5.2 billion total. Elevated settlement levels persisted amid volatile markets and increasingly complex cross-border litigation frameworks. Nine mega settlements exceeded $100 million, just one short from the record set in 2024.
The report signals a shift away from passive participation toward operationally intensive claims management.
“Class action participation is no longer passive — it’s operational,” said Christi Cannon, Vice President and General Manager of Global Class Actions at Broadridge. “Cases move faster, span more jurisdictions, and demand greater precision. Differences in legal systems, filing requirements, and settlement mechanics leave little room for error. Without the right infrastructure, investors risk missing recoveries altogether.”
Among the most notable developments is the emergence of AI-related securities litigation. Broadridge recorded a growing number of claims alleging misleading disclosures tied to artificial intelligence capabilities, earnings expectations or risk controls.
Twelve new cases were filed in 2025 alone, part of more than 50 AI-linked filings over the past five years. Allegations frequently center on so-called “AI washing,” where companies allegedly exaggerate technological sophistication or commercial readiness.
Regulators are increasingly focused on disclosure clarity, with advisory bodies urging standardized definitions and explanations of how AI materially affects business operations — pressure that could raise compliance expectations for issuers and, indirectly, portfolio managers.
The report also highlights accelerating adoption of opt-in and collective redress mechanisms, particularly across Europe and other international jurisdictions.
More than 100 collective redress claims were filed in Europe during 2025, reflecting regulatory harmonization efforts and evolving litigation funding rules. Advisors managing global portfolios may face tighter participation deadlines and additional documentation requirements as early engagement becomes essential to securing recoveries.
Australia’s growing use of “soft class closures,” which require investors to register before mediation to qualify for settlements, illustrates the broader shift toward proactive participation. Failure to act early can effectively exclude investors from compensation despite membership in the class.
Environmental, social and governance disputes continued gaining traction as investors increasingly rely on litigation to enforce transparency and governance standards.
Broadridge noted ESG investing is projected to reach $30 trillion globally by 2030, reinforcing shareholder activism tied to disclosure practices and corporate compliance issues.
One prominent example cited involved a proposed UK opt-in action tied to governance failures following sanctions-related compliance allegations, demonstrating how ESG themes are increasingly intersecting with securities litigation risk.
Another shift with implications for advisors is the growing role broker-dealers and custodians play in managing claims filing and asset recovery.
Broadridge now supports filings across nearly 150 million retail accounts through partnerships with intermediaries, a move aimed at addressing historically low participation rates among individual investors while easing administrative burdens for advisory teams.
Meanwhile, US securities filings remained relatively stable at 205 federal cases in 2025 — only slightly below recent averages — reinforcing the country’s continued central role in global shareholder litigation.
As litigation grows more international and technologically complex, asset recovery is becoming a strategic function rather than an afterthought, requiring earlier engagement, stronger data management and closer coordination across custodians and service providers.
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