Key Trends in Accounting Class Actions Filings and Settlements
ACCOUNTING ALLEGATIONS
Based on the cases settled in 2025, GAAP violations are more likely to be added to non-accounting case filings than removed from accounting case filings. Approximately 54% of accounting case settlements included allegations of GAAP violations that were not made in the first identified complaint (FIC), whereas only 9% of settled cases had allegations of GAAP violations in the FIC that were later removed prior to settlement.
For the second consecutive year, the most common GAAP violation alleged in accounting case filings was asset valuation and/or impairment.
Although the number of accounting case settlements with alleged GAAP violations in 2025 was generally consistent with 2024, the median value of such settlements increased by 67%. Similar to accounting case filings, the most common alleged GAAP violation in accounting case settlements was asset valuation and/or impairment.
When asset valuation and/or impairment violations (a subset of GAAP violations) are alleged, they are most commonly made after the FIC and remain through settlement. In 2025, only 25% of accounting case settlements that included allegations related to asset valuation and/or impairment also had those violations alleged in the corresponding FIC.
RESTATEMENTS
The DDL for accounting case filings involving restatements increased in 2025 by approximately 140% from 2024.
For the third consecutive year, the median settlement amount for accounting cases involving restatements was less than that for accounting cases without restatements. In 2025, the median settlement amount was 78% lower.
SHORT-SELLER REPORTS
Accounting cases filed in 2025 were nearly five times more likely to refer to a short-seller report than non-accounting cases, the largest disparity between accounting and non-accounting cases since tracking began.1 However, based on cases settled in 2025, references to a short-seller report in accounting case filings did not lead to greater settlement amounts, as the median settlement amount for such cases was only $2.8 million.
SETTLEMENT TIMING
The average time to settle for accounting cases in 2025 increased to 4.1 years, the longest time to settle since 2015. The length of time between filing and settlement for accounting cases continues to be related to settlement size.
TREND FILINGS AND SETTLEMENTS
One-third of all cases related to cryptocurrency filed in 2025 were accounting cases, more than double the average over the past five years.
Accounting case filings involving artificial intelligence (AI) issues are being filed against larger issuer defendants. In 2025, the median pre-disclosure market capitalization for issuer defendants in accounting cases with AI issues was $3.6 billion, up from $1.0 billion during 2020–2024.
PLAINTIFF LAW FIRMS
In 2025, four plaintiff law firms—The Rosen Law Firm P.A., Pomerantz LLP, Glancy Prongay & Murray LLP, and Levi & Korsinsky—filed 56% of accounting cases, the lowest share in the past five years.
The median filing lag for accounting cases filed by these four firms in the past five years (25 days) was 20 days shorter than that for accounting cases filed by other firms (45 days).
For more information on this topic, please see Accounting Class Action Filings and Settlements.
- References to a short-seller report in accounting case filings have been tracked since 2021.
The views expressed herein are solely those of the authors and do not necessarily represent the views of Cornerstone Research.
Source(s):
Key Trends in Accounting Class Actions Filings and Settlements | JD Supra. (2026). JD Supra. https://www.jdsupra.com/legalnews/key-trends-in-accounting-class-actions-4263183/