Crypto Class Lawsuits Doubled, SPAC Lawsuits Sunk in 2022 (1)

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Photo illustration: Bloomberg’s law

February 1, 2023, 8 a.m.; updated: February 1, 2023, 3:20 p.m.

IPO lawsuits were up, says CornerstoneSome M&A lawsuits are down sharply from 2016 to 2019

Investors filed 23 new proposed cryptocurrency class action lawsuits unrelated to M&As in 2022, more than double the number filed in 2021, while fewer investors sued acquisition companies special-purpose than the previous year, according to a report by Cornerstone Research.

Overall, proposed securities class action lawsuits, including those related to mergers and acquisitions, fell from 218 to 208, the report said. But excluding M&A lawsuits focusing on what Cornerstone calls core filings “class action lawsuits would have increased in 2022,” he says.

Of the top federal filings, a third were for SPACs, cryptocurrency and Covid, according to the analysis. related proxy filings fell 61% to lowest level since tracking began in 2009, report says crypto lawsuits filed in 2020 and 2021 had higher dismissal rate than other federal filings basis, and those filed in 2021 had a higher settlement rate than others, he says. Of digital currency lawsuits, 8% of those filed from 2016 to 2019 involved crypto exchanges, but the percentage rose to 40% in 2020. -2022, says CornerstoneAlleged losses as measured by maximum dollar loss and disclosure dollar loss increased 138% and 100%, respectively, in 2022, he says

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