Average securities class action settlements climb 27% as boards navigate unprecedented complexity, rising insolvencies: Allianz Commercial.
Directors and officers face mounting liability from an expanding risk landscape where geopolitical uncertainty, cyber incidents and emerging threats like artificial intelligence increase the threat of litigation by shareholders, according to Allianz Commercial’s Directors and Officers Insurance Insights 2026.
The liability environment for corporate leadership is intensifying across multiple fronts, according to the report. While the number of U.S. securities class action filings remain steady at around 229 cases annually, the financial impact has grown substantially: the average size of U.S. securities class action settlements increased 27% to $56 million in the first half of 2025.
More concerning for boards: shareholder derivative litigation — where investors sue directors on behalf of the company — has surged, with 13 of the 18 shareholder derivative settlements exceeding $100 million occurring in just the past five…
