U.S. Software Companies Impacted Most by Potential Losses from Active Securities Class Actions

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Oct 10, 2023, 10:10 ET

BETHESDA, Md., Oct. 10, 2023 /PRNewswire/ -- SAR, a data analytics company specializing in D&O risk exposures, published the 5^th anniversary edition of their Securities Class Action Rule 10b-5 Exposure Report. According to the report, the Software, F.I.R.E., and Pharma/Biotech industry sectors exhibit the greatest amount of potential settlement losses from active securities class action lawsuits filed during the preceding five years.

The report – 5^th Anniversary Edition: SCA Rule 10b-5 Exposure Report 3Q 2023 – indicates that defendants in 136 open Rule 10b-5 private securities class action lawsuits in the three industry sectors have approximately $6.5 billion in potential settlement losses. 42 U.S. issuers in the software industry sector are currently facing approximately $4.7 billion in potential losses on active securities claims filed during the last five years. The settlement loss estimates for U.S. issuers presented in the report exclude the impact from shareholder derivative claims against the same defendants.

"Growing accumulation of potential settlement losses is driven by an increase in the magnitude of potential loss severity on active securities class action lawsuits, and short-term claim frequency. This is a potentially concerning development for some carriers and a contributing factor to volatility in the D&O market," said Nessim Mezrahi, CEO of SAR.

SAR is proud to have been supporting insurance clients with best-in-class D&O data analytics for the last 5 years as they navigate a complex and rapidly changing landscape in the D&O insurance industry. SAR looks forward to continuing to support industry participants take on the continued challenges of a volatile D&O market.

The report has been made available for download on the SAR website.

About SAR

SAR is a pioneer in public company D&O data analytics solutions. The Company was founded in 2018 and relies on specialized data science that implements U.S. Federal Court-approved methodologies to identify and track adverse corporate events that impact stock price performance of U.S. and non-U.S. issuers that trade on the NYSE and NASDAQ. Through a cloud-native platform, SAR dispenses comprehensive data-driven insights for leading global insurance companies and their distribution partners. Highly specialized expertise, decades of independent empirical research, and tried and true technologies, have established SAR as an innovation leader in public company D&O data analytics solutions anchored by human accountability.

Media Contact: info@sarlit.com

SOURCE SAR