Securities Class Action Trends: AI Growth in 2024

In the Securities Class Action Filings 2024 Midyear Assessment , it was revealed that there has been a recent surge in AI - related filings in the first half of 2024 . The trend categories with the highest number of filings in this period were COVID-19 , AI , SPAC , and Cryptocurrency . While the number of cryptocurrency - related filings remained steady compared to the previous year , AI - related filings have been on the rise.

In 2024 H1 , there were a total of six AI - related filings , marking a steady increase from the previous years . The prominence of AI in the business models of many companies has contributed to the rise in such filings . Additionally , COVID-19 - related filings were the most common trend category with seven filings , indicating the impact of the pandemic on companies and their products.

The increase in AI - related filings is also reflected in the US courts , where the first trickle of AI - related securities class actions has been observed . Six such cases were logged in the first half of 2024 , highlighting the growing importance of AI in the tech industry . These cases revolve around allegations that companies have exaggerated the effectiveness of AI in their businesses , leading to potential securities violations.

Furthermore , the report by National Economic Research Associates ( NERA ) shows that there were a total of 112 new federal securities class action suits filed in the first half of 2024 . The majority of these cases were filed in the Second and Ninth Circuits , with a focus on Rule 10b-5 , Section 11 , and/or Section 12 violations . The technology and health technology services sectors made up a significant portion of the filings , indicating the impact of tech - related issues on the securities market.

Overall , the data suggests a shift in the types of securities class actions being filed , with a decrease in crypto - related claims and an increase in AI - related cases . As companies continue to integrate AI into their operations , it is likely that AI - related filings will become more common in the future . The legal landscape surrounding securities class actions is evolving , and companies need to be aware of the risks associated with misrepresenting the use of AI in their businesses.