Securities Class Action Lawsuits Surge in AI and Crypto Cases, Driving Market Cap Losses to Record Highs

The legal landscape for securities litigation maintained consistency, with plaintiffs filing 114 securities class actions in federal and state courts during the first six months of 2025, nearly matching the 115 cases filed in the second half of 2024, according to Cornerstone Research’s midyear assessment.

However, a dramatic surge in artificial intelligence-related lawsuits and ballooning financial losses signal significant shifts in litigation patterns, the report noted.

“While overall filing volume was steady, filings were notably front-loaded in 2025 H1, with 67 in Q1 versus 47 in Q2—a reversal from 2024 where Q2 was higher than Q1,” said Alexander “Sasha” Aganin, the report’s coauthor and a Cornerstone Research senior vice president. “In addition to the continued rise in AI-related filings and cryptocurrency-related filings, the annualized number of SPAC-related filings is on pace to nearly match that of 2024.”

Filing Trends Show Stability with AI Surge

While securities class action filings remained steady in the first half of 2025, core filings, which exclude merger and acquisition cases, totaled 111 compared to 112 in the previous period, while still exceeding the historical semiannual average of 97.

The most notable shift emerged in AI-related litigation, with 12 AI cases filed in the first half of 2025. This pace positions the category to exceed 2024’s total of 15 cases for the full year.

Cryptocurrency cases also accelerated, with six filings in the first half nearly matching the seven total cases filed throughout 2024.

Meanwhile, COVID-19-related litigation continued its sharp decline, reflecting the pandemic’s waning impact on corporate disclosures and investor claims, according to the report.

Sector-specific patterns reveal additional shifts in litigation focus. The consumer non-cyclical sector experienced a 31% increase in filings compared to the second half of 2024, driven primarily by biotechnology and pharmaceutical companies facing heightened scrutiny. Conversely, technology sector filings decreased to 20 cases from 23, though the financial impact from these cases increased dramatically.

Market Losses Reach Record Territory

Despite stable filing volumes, the financial impact of securities litigation intensified dramatically in the first half of 2025, according to Cornerstone Research. The Disclosure Dollar Loss Index, which measures market capitalization changes around class period end dates, reached $403 billion in the first half of 2025, representing a 56% increase from the second half of 2024.

The Maximum Dollar Loss Index, tracking market cap changes from peak values during class periods to disclosure dates, surged even more dramatically to $1.85 trillion, marking a 154% increase from the previous period. This represented the eighth consecutive semiannual period with losses above the historical average of $622 billion.

Consumer non-cyclical companies bore the heaviest burden, comprising 62% of the total disclosure losses despite representing 44% of core filings. Within this sector, health services and pharmaceuticals subsectors accounted for 31% of filings but 65% of total losses, the report said.

The concentration of massive financial losses in a relatively small number of cases represents perhaps the most significant risk management challenge emerging from the data, according to Cornerstone Research. Mega filings—those involving losses of at least $5 billion for disclosure dollar loss or $10 billion for maximum dollar loss—accounted for 83% of total disclosure losses and 91% of maximum losses in the first half of 2025.

Access the full midyear report here. &