Class Action Settlements for Investors
If a stock you bought fell after the company corrected a misleading statement, you may be in a securities class action. The trade confirmations in your brokerage account are what you need.
If you bought shares, bonds or options of a company during a set period and the price fell when the truth about a misleading statement came out, you may be eligible for a securities class action settlement. Investors can also recover through shareholder merger settlements and SEC Fair Funds. Unlike most consumer claims, you'll need your actual trade data: dates, quantities and prices.
Types of investor settlements
- ✓Securities fraud class actions. Claims under federal securities laws that a company misled the market. These are the most common investor settlements. See securities class actions explained.
- ✓Merger and SPAC cases. Shareholders who say they were underpaid in a buyout, or misled before voting on a SPAC merger.
- ✓SEC Fair Funds. Money the SEC collects from a company and distributes to harmed investors.
- ✓Retirement plan cases. ESOP and 401(k) cases under ERISA, which usually pay automatically. These are covered in our ERISA guide.
Open investor settlements right now
WM Technology (Weedmaps) $7.5M Securities Settlement (MAPS)
Securities WM Technology (Weedmaps) $7.5M Securities Settlement (MAPS) A pro rata share of $7.5 million, est. about $0.072 per security before fees, for investors who bought WM Technology or Silver Spike stock or warrants.
$60M Continental Resources Shareholder Settlement — Automatic Payment (Hamm Buyout)
Gritstone bio $6M Securities Settlement (GRTS)
Securities Gritstone bio $6M Securities Settlement (GRTS) A pro rata share of $6 million from former CEO Andrew Allen’s insurers, est. about $0.11 a share before fees, for investors who bought Gritstone bio common stock.
Twist Bioscience $17M Securities Class Action Settlement
Holley $12.75 Million Securities Class Action Settlement
Elon Musk Twitter Securities Class Action Verdict
Twitter Acquisition Securities Settlement — Payout for 2022 Twitter Shareholders
Investors who held or sold Twitter (TWTR) stock around Elon Musk's 2022 acquisition may claim from this securities class action settlement. Payment is pro rata based on shares held and trading losses; the claim form asks for your brokerage records.
Everbridge $85M Securities Settlement (EVBG) — About $2.32 a Share
Securities Everbridge $85M Securities Settlement (EVBG) — About $2.32 a Share A pro rata share of an $85 million fund, estimated at about $2.32 a share before fees, for investors who bought Everbridge (EVBG) common stock.
Edwards Lifesciences $39M Securities Settlement (EW) — About $0.66 a Share
Securities Edwards Lifesciences $39M Securities Settlement (EW) — About $0.66 a Share A pro rata share of a $39 million fund for investors who bought Edwards Lifesciences common stock in the first half of 2024, estimated at about $0.66 a share before fees.
Hut 8 $2.35M Securities Settlement (HUT)
Securities Hut 8 $2.35M Securities Settlement (HUT) A pro rata share of $2.35 million for Hut 8 shares traceable to the 2023 US Bitcoin Corp merger that were sold at a loss before June 14, 2024.
Kornit Digital $19.5M Securities Class Action Settlement
Becton Dickinson $175M SEC Fair Fund (BDX Investors)
SEC Fair Fund distributing the $175 million civil penalty Becton, Dickinson and Company paid to settle SEC charges that it misled investors about risks related to its Alaris infusion pump (Admin. Proc. File No. 3-22361). Investors who bought BDX stock in the relevant period and lost money can claim a distribution. Who is eligible: Persons or entities who purchased or acquired Becton, Dickinson and Company (BDX) common stock from February 5, 2019 through February 5, 2020, inclusive, and suffered losses.
Showing 12 of 22. Updated daily from the SettleScout catalogue. See every open settlement.
Who counts as a class member
Securities classes are defined by what you bought and when. A typical class covers everyone who purchased the stock between two dates, the class period, and held it through at least one disclosure that dropped the price. If you bought and sold entirely before the bad news came out, you may have no recognized loss even though you're technically in the class.
Payouts follow a plan of allocation, which calculates a recognized loss for each trade using a formula approved by the court. Each claimant then gets a share of the net fund in proportion to their recognized loss. That's why estimates are given per share and why the final number depends on how many eligible shares are claimed.
How to file
- 1Check whether you bought the security during the class period, and in which accounts.
- 2Download trade confirmations or annual statements showing every purchase and sale in the period, plus your holdings at the start and end.
- 3File on the administrator's site, entering each transaction or uploading the requested file.
- 4Keep the confirmation and respond to any deficiency notice quickly.
Many brokers forward notices but don't file claims on your behalf. Shares held in "street name" belong to you as the beneficial owner, and you usually have to file yourself. Our step-by-step guide to filing a securities claim covers it.
Retirement accounts and funds
If you held the stock through a mutual fund or ETF, the fund is the class member, not you, and it files its own claim. Stocks held directly in an IRA belong to that account, so any recovery generally should be paid into the IRA rather than to you personally. Ask your custodian how they handle settlement payments.
Keep your trade history
Securities cases often settle years after the class period, and brokers may only show a few years of history online. If you switch brokers, download your full transaction history first. Cost basis records from tax time are useful too.
Lead plaintiffs and opting out
Under the Private Securities Litigation Reform Act of 1995, the court appoints a lead plaintiff, usually the investor or group with the largest losses, often an institution. You don't need to do anything to stay in the class. Large investors sometimes opt out to pursue their own case, but for most individuals, filing a claim in the settlement is the practical route.
Mergers, SPACs and automatic payments
Shareholder settlements over mergers sometimes pay automatically through the brokerage system, because the class is everyone who held shares on a specific date. SPAC settlements may cover investors who held shares when a merger vote took place, or who were entitled to redeem but didn't. The notice explains whether you need to file. If it says payment is automatic, check that your broker still holds your account details; if you've moved brokers, contact the administrator.
SEC Fair Fund distributions work like settlements but come from a government enforcement action. They often require a claim form and trade data too, and are posted on the SEC's website.
Watch out for firms that offer to file securities claims for a percentage of your recovery. Filing yourself through the official administrator costs nothing, and the claim form explains exactly what trade data to provide.
SettleScout can track the companies you hold. Add them to your list, and the app will flag securities settlements that name them, show the claim deadline and remind you before it closes.
Frequently Asked Questions
How do I know if I'm in a securities class action?
Compare your purchase dates with the class period in the settlement notice. If you bought the security during that window, you are likely a class member, though you need a recognized loss to be paid.
Do I still qualify if I sold the stock?
Often yes, depending on when you sold. Sales after a corrective disclosure usually count; sales before any disclosure often produce no recognized loss.
How much do securities settlements pay per share?
It varies widely and depends on the plan of allocation, the size of the fund and how many shares are claimed. Notices often give an estimated average per share.
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