Securities class actions, FDA risks and D&O insights
Securities class action (SCA) filings against life science companies increased 15% in 2024 over 2023 – a total of 50 cases, representing 22% of all securities class action lawsuits during the year. [1] In the same period, the broader D&O market has remained persistently competitive, with conditions tempered by pressures toward rate stabilization. Although reductions may still be available on a case-by-case basis, we anticipate the most likely renewal outcome for life sciences companies for the remainder of this year and into 2026 to be flat for stable risk profiles.
A NERA report[2] identified ‘health technology and services’ as the second most sued industry in 2024 with 26% of all filings (ceding first place to electronic technology and technology services). The figures are consistent with past year results, with ‘health technology and services’ the second most sued industry since 2020, with a single year exception (2022) where it was the most sued industry.
Overall SCA filings were up year-on-year, with 225 filings in 2024, as compared to 212 filings in 2023.[3] In the first half of 2025, there were 111 SCA filings, which annualized, would represent a similar filing rate as in recent years.[4] Of note, however, there was a significant drop in filings in Q2 2025 (44 filings) as compared to Q1 (67). Of the 111 cases filed this year, 31 were against companies in the life science, biotechnology, pharmaceutical and broader healthcare sectors, reflecting a consistent pattern of more than 20% of overall filings. [5]
A breakdown of 2024 SCA filings against life science companies provides a deeper insight into the nature of these more recent claims.
Data as to the success of life science companies at the pleadings stage of litigation reveal — consistent with recent prior years — that companies prevailed in disposing of cases a majority of the time:
Companies also had success in 2024 at the appellate court level, with courts affirming either the lower courts’ dismissal or grant of summary judgment in all eight cases.[15]
Our conclusions are twofold:
As an industry, the life sciences are experiencing a relatively consistent number of filings in raw numbers, yet they are sued more than almost any other industry as a percentage of overall filings. Looking ahead, the risks remain challenging, particularly for biopharma companies facing exposures with their role in drug pricing, drug and technology development and access to medicines, all at a time of data-driven approaches, greater collaboration and digital transformation. Macroeconomic conditions, from the potential for economic impacts of tariffs, as well as government funding cuts affecting life sciences companies, create possible challenges for a fast moving and innovative industry.
The headline of proportionately higher-than-average filings is offset by the higher success rate in dismissing these claims. Many SCAs are predicated on the purported failure of products to meet expectations either in terms of progress through development or of revenues derived. Often, such claims can be defended by robust risk factors and other disclosures in public filings.
WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
