Cornerstone Research recently published its 2025 midyear assessment of securities class action filings.[1] Compared to the second half of 2024, securities class action filings in the first half of 2025 decreased slightly from 115 to 114 filings. However, notably, the numbers of Artificial Intelligence (AI)- and cryptocurrency-related filings increased significantly when compared against the second half of 2024. There were 12 AI-related filings in 2025 H1, nearly reaching the annual total of 15 AI-related filings in 2024. There were six cryptocurrency-related filings in 2025 H1 while there were only seven such filings in total in 2024.
AI-Related Securities Class Action Filings
According to the report, there were 12 AI-related filings in 2025 H1, filed in New York, California, Illinois, New Jersey, Washington and Idaho. California was the preferred forum for plaintiffs, with four actions filed in the Northern District of California and two actions filed in the Central District of California. All 12 AI-related filings remain pending.
One consistent theme throughout the AI-related filings in 2025 H1 is the allegation that issuers are making materially misleading AI-related statements in violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, including overly optimistic statements about the positive impact of AI on issuers’ financial performance. For example, investors sued a large technology company for making materially false and misleading statements regarding the AI features of its speech interpretation and recognition interface used on mobile devices.[2] The complaint alleges that the issuer misstated the time it would take to integrate the advanced AI-based features into its mobile devices, and as a result, overstated the issuer’s business and financial prospects.[3] On the other hand, investors are also filing actions against companies for underestimating the negative impact of the rapid development of AI on their services and products. A prominent social news aggregation and social media platform company was recently hit by a class action suit for failing to disclose how the AI Overview feature of Google Search could likely lead to “permanent” disruptions on the user traffic for the company’s website.[4] Jill E. Fisch, a professor at the University of Pennsylvania Carey Law School commented that “Investors are trying to understand how AI fits into issuers’ business plans. AI statements are market-moving events, and so that’s going to be the focus of litigation until companies figure out what they’re doing with AI and get their disclosures rights.”[5] AI plays a more significant role in today’s market, and companies are exploring different ways to integrate AI into their business. Under this backdrop, any AI-related statements made by companies may cause market reactions. To avoid potential legal pitfalls, companies should take care to ensure that any AI-related disclosures are accurate and transparent and are accompanied by appropriate cautionary language. Companies should avoid overstating the benefits resulted from AI while also not overlook the disruptive impact of AI on their businesses.
Cryptocurrency-Related Class Action Filings
There were six cryptocurrency-related filings in 2025 H1. The cases were filed in New York, Virginia, Georgia, and Florida. New York is the preferred forum, with two actions filed in the Southern District of New York and one action filed in the Eastern District of New York. All six cases remain pending.
There are two main categories of cryptocurrency-related filings. One major category includes claims against companies for issuing and offering cryptocurrency tokens as unregistered securities. One example is the suit against a computer game company that created a platform allowing users to invest in virtual versions of real racehorses.[6] According to the complaint, the company raised millions of dollars through the sales of non-fungible tokens (“NFT”) by promoting them as investment opportunities with the expectation of profits.[7] The complaint alleges that the company violated Sections 5 and 12(a)(1) of the Securities Act by selling and soliciting the sale of unregistered NFT securities.[8]
Another major category of cryptocurrency-related class actions relates to the making of materially false and misleading claims on cryptocurrency in violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. For example, a class action lawsuit was filed against a company that focuses on purchasing and holding bitcoin as its long-term business strategy.[9] Plaintiffs allege that the company overstated the anticipated profitability of its bitcoin-focused investment strategy and failed to disclose the various risks associated with bitcoin’s volatility.[10]
As we discussed in President Trump’s SEC Trims Crypto Oversight, compared to the previous administration, the Securities and Exchange Commission (SEC) under the leadership of the Chairman Atkins has taken a friendlier approach in the regulation of cryptocurrency. On July 31, 2025, Atkins announced the launch of “Project Crypto” to modernize the securities rules and regulations.[11] He assured crypto companies that “[d]espite what the SEC has said in the past, most crypto assets are not securities.”[12] To achieve President Trump’s vision of making America the crypto capital of the world, Atkins announced that the SEC will draft clear and simple rules that market participants can use to determine whether a crypto asset is a security.[13] As the SEC has dialed back its previous active enforcement actions against crypto companies, and crypto companies are emboldened by this friendly regulatory environment, private investors appear to be filling the void through filing class actions lawsuits.
Conclusion
The securities class action filings in the first half of 2025 are driven by a rise in securities suits related to emerging technologies like AI and cryptocurrency. The surge in AI- and cryptocurrency-related filings reflects the rapid development of AI and the changing regulatory landscape of cryptocurrency. The market has shown notable responses to AI- and cryptocurrency-related statements, leading to volatility in stock prices. As a result, companies should be extra vigilant in their AI- and cryptocurrency-related public disclosures to avoid legal risks. In addition, as the market awaits more regulatory clarity in the crypto space, cryptocurrency companies also need to exercise caution in their product design and operations to manage and mitigate legal risks.
[1] Cornerstone Research, 2025 Midyear Assessment: Securities Class Action Filings (July 30, 2025), http://efaidnbmnnnibpcajpcglclefindmkaj/https://www.cornerstone.com/wp-content/uploads/2025/07/Securities-Class-Action-Filings-2025-Midyear-Assessment.pdf.
[2] Tucker v. Apple Inc., No. 25-cv-05197 (N.D. Cal.)
[3] Id. at ECF Doc. No. 1.
[4] Tamraz v. Reddit, Inc., No. 25-cv-05144 (N.D. Cal.)
[5] Martina Barash and Gillian R. Brassil, Al, Big-Dollar Suits Dominate Data on New Investor Class Actions (July 31, 2025), https://news.bloomberglaw.com/litigation/ai-big-dollar-suits-dominate-data-on-new-investor-class-actions
[6] Cantner v. Game of Silks, Inc. et al., No. 9:25-cv-80262 (S.D. Fla.)
[7] Id. at ECF Doc. No. 1.
[8] Id.
[9] Hamza v. MicroStrategy Incorporated d/b/a Strategy, No. 1:25-cv-00861 (E.D. Va)
[10] Id. at ECF Doc. No. 1.
[11] Chairman Paul S. Atkins, American Leadership in the Digital Finance Revolution (July 31, 2025), https://www.sec.gov/newsroom/speeches-statements/atkins-digital-finance-revolution-073125
[12] Id.
[13] Id.
