In a year when much ink has been spilled on whether securities litigation will be curbed by potential mandatory arbitration provisions, decreased Securities and Exchange Commission (SEC) enforcement activity, and reduced public-company reporting, the headline at the mid-year point appears to be that federal securities class action filings are up in 2026, buoyed in part by a record-breaking number of securities class actions featuring AI-related allegations. According to a new report from NERA, plaintiffs brought 118 new federal securities class actions during the first half of 2026—on pace to surpass the record number of such cases filed in 2023, the recent peak. If this rate continues, we anticipate 15% more cases filed in 2026 than 2025.
The Plaintiffs’ Bar Continues to Follow the AI Boom
The mid-year reporting confirms what many in the defense bar suspected: AI-related securities litigation continues to grow. NERA reports that 18 AI-related securities class actions were filed during the first six months of 2026 alone, already exceeding the 17 AI-related cases filed in all of 2025. As public companies increasingly highlight AI-driven initiatives, products, and growth expectations, the plaintiffs’ bar is scrutinizing disclosures of AI capabilities, implementation timelines, competitive advantages, and anticipated financial benefits. The increase in AI-related filings so far this year suggests that these kinds of statements will remain a significant source of litigation risk for public companies and that companies should consider engaging counsel early on to carefully vet their AI-related disclosures.
Filings in 2026 Appear Concentrated in Several Circuits
The Second and Ninth Circuits continue to dominate securities class action activity in the first half of 2026. Together, those circuits accounted for 78 filings, or 68% of all federal securities class actions filed so far this year, up from 57% filed in the first half of 2025. If filing trends continue, the Second Circuit could see 90 filings by year-end, exceeding the five-year high. The Ninth Circuit also remains a significant venue for securities litigation, particularly for technology companies on the West Coast. The Sixth Circuit is also on pace to have one of its most active years with a record number of filings.
Technology and Health Care Companies Remain Primary Targets; Cases Against Foreign Issuers Increase
Over the past few years, technology and health care companies accounted for the majority of securities class action filings. So far this year, electronic technology and technology services companies represented 28% of filings, while health technology and health care services companies accounted for 26% of the lawsuits filed—together, more than half of all federal securities class actions filed during the first half of 2026. Given the rising tide of AI-related securities class actions, we expect this trend to continue.
Foreign issuers also appear to increasingly be targets of securities class action filings so far this year. Following five years of decline and a 10-year low in 2025, the share of filings against foreign companies increased to 20.5% in the first half of 2026 versus 13.8% last year. There have been 23 filings against foreign companies in the first half of 2026, only three fewer than in all of 2025.
Looking Ahead
NERA’s data suggests that securities class action activity is likely to remain elevated throughout the remainder of this year, with significant activity continuing in the Second and Ninth Circuits. As a result, public companies should carefully evaluate disclosures of emerging technologies, future performance expectations, and regulatory developments. Companies that make public statements about AI initiatives, in particular, should expect those disclosures to receive heightened scrutiny from the plaintiffs’ bar.
Takeaways
- Despite speculation about the potential chilling impact of mandatory arbitration provisions, decreased enforcement activity by regulators, and reduced reporting, securities class action filings are on track to hit record numbers this year.
- Federal securities class action filings are on pace to reach approximately 236 cases in 2026, surpassing the previous peak of 233 filings in 2023.
- There were 18 AI-related filings in the first half of 2026, already exceeding the total number of AI-related securities class actions filed during all of 2025.
- The Second and Ninth Circuits are key venues, accounting for 68% of all federal securities class action filings so far this year.
- Technology and health care companies continue to be the most frequent targets of securities class actions.
- Public companies should be especially thoughtful about disclosures on topics likely to be scrutinized by the plaintiffs’ bar, especially AI-related disclosures.
If you have any questions, or would like additional information, please contact one of the attorneys on our Securities Litigation team.
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