Aon | Financial Services Group
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The Legal & Claims practice within the Financial Services Group at Aon has published the twentieth edition of the Year in Review.
In terms of frequency and severity of traditional securities class action claims, the number of filings increased, from 197 in 2022 to 213 in 2023. This is still well below the approximately 400 annual filings during the years 2017-2019, which were driven by federal mergers and acquisitions case filings, which rarely occurred in 2023. Those cases are now largely brought as individual actions, so do not appear in the current statistics. The increased number in 2023 was driven early in the year by banking cases, and then throughout the year by cases in the biotech and technology sectors. The average median settlement numbers increased considerably in 2023. It was also a year that saw the continued trend of large derivative settlements involving cash paid into a company as opposed to purely governance remediation.
Continuing from 2022, environmental, social and governance (ESG) matters remain an issue, from both proponents and detractors. A backlash has developed resulting in both political and legislative activity and companies and organizations are navigating a difficult path between activists on either side.
Climate disclosure guidelines were issued early in 2024, and cyber disclosure guidelines at the end of 2023. Both requirements could result in more litigation.
The 2023 Legal & Claims Year in Review is available here.
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