Federal securities class action lawsuits linked to artificial intelligence have risen sharply, contributing to an overall increase in filings in U.S. courts.
During the first half of 2026, 121 securities class actions were filed in federal and state courts. This marks a 30% increase from the second half of 2025 and a 6% rise compared to the same period last year, as documented by Cornerstone Research. The organization, which monitors litigation trends, noted that cases involving AI made up a larger portion of these filings.
AI-related cases drive litigation trends
Fifteen AI-related securities class actions were filed in federal court in the first six months of 2026. If this rate continues, the year’s total could nearly double the 16 cases filed in 2025. Most lawsuits focused on companies developing AI, with data centers and AI hardware or infrastructure firms also facing claims.
Sasha Aganin, a senior vice president at Cornerstone, said the surge stems from high expectations around AI. When companies fail to meet growth projections, stock prices often drop significantly, sometimes leading to legal action.
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The cases were distributed across sectors like software services, semiconductors, and energy. The Second and Ninth U.S. Circuit Courts, covering New York and California, handled the most filings. Technology firms faced twice as many AI-related suits as the average recorded between 1997 and 2025.
Financial losses approach record highs
The total disclosure dollar loss for the first half of 2026 reached $529 billion, nearing the record of $544 billion set in early 2022. Mega filings—those with losses of at least $5 billion—accounted for 85% of the total, the third-highest share ever recorded. Maximum dollar losses also climbed to $1.858 trillion, more than double the figure from the first half of 2025 and far above the semi-annual average of $667 billion.
One positive development emerged for businesses. No COVID-19-related securities class actions were filed in the first half of 2026, the first time since the pandemic began. Cybersecurity-related filings also vanished for the first time since 2016, while cryptocurrency cases fell to their lowest level since 2019, with only six filed.
If volatility among AI companies continues, more lawsuits may follow. Most cases were filed under Section 10(b) of the Securities Exchange Act of 1934, targeting both U.S. and foreign issuers.
Foreign firms targeted in pump-and-dump schemes
The chance of a “core filing”—lawsuits unrelated to mergers and acquisitions—against U.S. exchange-listed companies in 2026 is set to be the highest since 2019. For non-U.S. issuers, core federal filings could reach their highest level since 2020, largely due to pump-and-dump allegations.
Aganin noted that the reason foreign issuers face these claims more often remains unclear. Some foreign companies have less liquid securities traded in the U.S., which may contribute to the trend.
Since the second half of 2025, ten lawsuits included pump-and-dump claims. Six involved tariff-related allegations, and four centered on private credit disputes tied to business development companies.
