The Biggest Securities Lawsuit Payouts of 2025

New York: $362.5M Settlement in GE Securities Fraud Class Action

Represented by: Kessler Topaz Meltzer & Check, LLP

In one of the largest securities fraud settlements in recent years, General Electric Co. and its former CFO agreed to pay $362.5 million to resolve a long-running class action suit just weeks before trial. The case, filed by Sjunde AP-Fonden and The Cleveland Bakers and Teamsters Pension Fund, centered on allegations that GE misled investors by concealing its reliance on intercompany factoring to boost cash flow in its struggling power unit. Plaintiffs argued that GE’s opaque accounting practices—including the premature recognition of revenue from long-term service agreements—artificially inflated stock prices and ultimately caused significant financial harm to shareholders when the truth was gradually revealed.

The litigation, which spanned seven years and involved six amended complaints, was marked by complex allegations regarding GE’s handling of liabilities in its long-term care insurance segment and questionable revenue practices in its power business. While most claims were dismissed over time, the case proceeded to trial on the remaining allegation that GE’s use of factoring distorted its financial health. Notably, the SEC had already levied $200 million in penalties over related conduct, establishing a separate Fair Fund to compensate defrauded investors. On April 24, 2025, a federal judge approved the settlement and awarded nearly $70 million in attorney fees, formally concluding a high-stakes case that underscored the importance of transparency in corporate financial reporting.

Texas: $126.3M SPAC Settlement in Alta Mesa Investor Fraud Case

Represented by: Robbins Geller Rudman & Dowd LLP, Entwistle & Cappucci LLP

Plaintiffs secured a $126.3 million settlement from Alta Mesa Resources, its executives, and Riverstone Holdings in a major securities fraud case involving a SPAC. Reached mid-trial in the Southern District of Texas, it could become the largest SPAC-related securities class action recovery. Investors alleged Alta Mesa inflated earnings and misrepresented the finances of AMH and Kingfisher to gain approval for a 2018 merger. The company later took a major write-down and filed for bankruptcy in 2019, leading to fraud and mismanagement claims.

The trial, led by Robbins Geller Rudman & Dowd LLP and Entwistle & Cappucci LLP, demonstrated the mounting legal risks surrounding SPAC structures and disclosures. Judge George C. Hanks, Jr. presided over the trial, which was initiated in January 2019 and involved several other defendants who settled before proceedings began. Lead counsel Trig Smith emphasized the impact of presenting the case to a jury: “Trial brings a lot of clarity, and the recovery here is the direct result of our client’s willingness to allow us to try the case.” The result adds to a string of record-breaking settlements by Robbins Geller, reflecting a trend of trial-readiness driving substantial recoveries for defrauded investors.

New Jersey: $106M SEC Resolution Over Vanguard Tax Disclosure Failures

Represented by: New Jersey Attorney General

New Jersey, Connecticut, and New York, along with the SEC, reached a $106 million settlement with Vanguard Marketing Corporation and The Vanguard Group, Inc. The case centered on Vanguard’s failure to supervise staff and properly disclose tax risks to retail investors. When Vanguard lowered the investment minimum for its Institutional Target Retirement Funds, many investors switched funds, triggering large capital gains. Vanguard failed to warn remaining investors of the resulting tax liabilities.

The settlement, coordinated through the North American Securities Administrators Association (NASAA), concluded a three-year investigation and marks a significant development in investor protection surrounding target date funds. Regulators emphasized the importance of full transparency in retirement investments, especially for retail investors who rely on the simplicity of such funds. As part of the agreement, the SEC will administer restitution through its Fair Fund program to compensate affected investors. “Target date retirement funds are often promoted for their simplicity... and the last thing these investors would expect is a large tax bill,” said Elizabeth M. Harris, Chief of New Jersey’s Bureau of Securities. The settlement highlights the ongoing regulatory focus on ensuring that investment firms prioritize customer welfare and comply with disclosure obligations.

California: $100M Derivative Settlement Over Wells Fargo Governance Lapses

Represented by: Robbins Geller Rudman & Dowd LLP

In April 2025, a federal court preliminarily approved a $100 million settlement in a shareholder derivative lawsuit against Wells Fargo's officers and directors. The suit alleged that the bank's leadership breached their fiduciary duties by failing to implement adequate risk management and compliance oversight, contributing to a series of high-profile scandals and regulatory violations. The settlement resolves claims that board-level inaction allowed misconduct to persist, ultimately damaging the company’s reputation and financial standing.

As part of the deal, the $100 million payment—expected to be funded largely through directors and officers (D&O) insurance—will go to Wells Fargo itself, rather than individual shareholders. Additionally, the bank agreed to adopt governance reforms aimed at strengthening compliance and board oversight. In a unique aspect of the settlement, the plaintiffs’ attorneys’ fees (approximately $33.3 million) will be paid in Wells Fargo stock, aligning their interests with the long-term well-being of shareholders. This resolution stands out as one of the largest derivative settlements in recent years and underscores increased scrutiny of board accountability in corporate governance.

New York: $80M SPAC-Related Settlement in Grab Holdings Securities Suit

Represented by: Levi & Korsinsky, LLP, Pomerantz LLP

Grab Holdings Ltd. has agreed to an $80 million settlement to resolve a securities class action lawsuit alleging it misled investors following its 2021 merger with SPAC Altimeter Growth Corp. The complaint, filed in the Southern District of New York, accused Grab and its executives of failing to disclose key operational challenges—specifically, a decline in driver supply and the costly incentives used to reverse that trend. When Grab reported a 44% drop in quarterly revenue and a $1.1 billion loss in March 2022, its stock price plummeted over 37%, triggering the lawsuit. The court partially denied the defendants’ motion to dismiss in March 2024, allowing the case to proceed through discovery and mediation.

The resulting $80 million settlement, funded by defendants’ insurers, stands as one of the largest SPAC-related securities fraud settlements to date. Plaintiffs’ counsel has indicated they will seek up to one-third of the fund—approximately $26.6 million—in legal fees. Although the case did not reach trial, its resolution underscores increasing accountability for post-SPAC companies and sets a significant benchmark in the wave of litigation that has followed the SPAC boom. As similar cases make their way through the courts, the Grab settlement may serve as a reference point in shaping future negotiations.

Conclusion

The major securities settlements of 2025 reflect intensifying scrutiny of corporate transparency, governance, and SPAC disclosures. With hundreds of millions recovered for defrauded investors, these outcomes demonstrate the power of persistent litigation and the growing willingness of courts and regulators to hold financial institutions and executives accountable for misleading conduct.