Published
October 16, 2026
Investors who bought CS Disco stock between July 21, 2021 and August 11, 2022 are covered by an $11.5 million class action settlement the legal technology company agreed to in 2026. The court has not yet granted preliminary approval, so there is no claim form or deadline yet.
What Is This About?
CS Disco, Inc., the Austin-based maker of e-discovery software whose stock trades under the ticker LAW, has agreed to pay $11.5 million to settle a securities class action brought on behalf of investors, subject to court approval. The case, Pluymen v. CS Disco, Inc., No. 1:24-cv-00028, is pending before U.S. District Judge David A. Ezra in the Western District of Texas. The lead plaintiff asked the court for preliminary approval on July 1, 2026, and as of the company’s most recent quarterly report, the settlement remained subject to both preliminary and final approval. Nothing can be claimed until the court acts.Free settlement alerts
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Status
Pending Preliminary Approval
Magistrate judge recommended approval October 7, 2026
Settlement Amount
$11.5 Million
Subject to court approval · $8.1 million insurance recovery recorded
Class Period
July 21, 2021 – August 11, 2022
Investors who bought CS Disco (LAW) stock
Can I Claim?
Not Yet
No claim form or deadline until the court grants preliminary approval
What the Lawsuit Claimed
The case began on September 19, 2023, when a proposed class action was filed against CS Disco in federal court in New York; on January 8, 2024, the court transferred it to the Western District of Texas, where the company is based. The investors claimed that statements made by the company and its former chief executive, Kiwi Camara, about what was driving CS Disco’s revenue growth were misleading, and that investors who bought shares during the class period paid inflated prices. The original complaint said CS Disco went public on July 21, 2021 at $32 a share and that insiders sold shares in a September 2021 secondary offering at $53. It alleged that the company’s rapid growth depended on a handful of large customers whose business was already winding down, and that investors learned this on August 11, 2022, when CS Disco reported second-quarter results and said it would leave revenue from its largest customers out of its full-year guidance. According to the complaint, the stock fell $15.53, or more than 53%, between August 11 and August 12, 2022. Those are allegations. No court has found that CS Disco or its former executives violated securities law, and a settlement of this kind resolves the claims without a finding of liability.The case survived the company’s challenge to the complaint. On January 30, 2025, Judge Ezra granted the motion to dismiss in part and denied it in part, and on April 9, 2025 he denied the defendants’ request to reconsider his rulings on falsity and scienter, the legal term for intent. The defendants answered the amended complaint on March 31, 2025, and on December 29, 2025 the court stayed the case while the parties finalized the settlement. The signed Stipulation of Settlement, with the proposed notices and claim form, was filed on July 1, 2026.
Where the Case Stands
The settlement arrived late in the case. In August 2025 the lead plaintiff moved to certify the class, and Judge Ezra referred that motion to U.S. Magistrate Judge Mark Lane. On December 16, 2025, Judge Lane recommended against certifying the class. He found most class requirements were met, but concluded that, given the nature of the alleged misstatements, investors were not entitled to a presumption that would let reliance be decided for the whole class at once, so individual questions would dominate. That recommendation is still pending before Judge Ezra. The parties then took part in two mediation sessions and accepted a mediator’s proposal to settle for $11,500,000, signed a term sheet on January 28, 2026, and the lead plaintiff asked the court for preliminary approval on July 1, 2026.On October 7, 2026, after a September 24 hearing, Judge Lane issued a report recommending that Judge Ezra grant preliminary approval, provisionally certify a settlement class, approve the notice plan and set a final hearing. The report notes that the settlement recovers about 4.66% of the plaintiffs’ best-case estimate of roughly $246.9 million in class-wide damages, and that class counsel will ask for attorneys’ fees of up to one-third of the fund. It also recommends Strategic Claims Services as claims administrator. Under the proposed plan of allocation, each investor’s loss is based on shares bought during the class period, and losses on shares sold before the alleged truth came out are not compensated. A confidential supplemental agreement lets CS Disco end the settlement if opt-outs pass a set threshold, a term the report describes as standard in securities settlements. Parties have 14 days to object to the report; Judge Ezra then decides whether to adopt it.
CS Disco’s quarterly report for the period ending June 30, 2026 says the company agreed to the $11.5 million settlement amount, that the settlement remains subject to preliminary and final approval by the court, and that it recorded a corresponding insurance recovery of $8.1 million on its balance sheet as of June 30, 2026, up from $8.0 million at the end of 2025.
What Happens Next
If Judge Ezra adopts the recommendation, the schedule in the proposed order would put the settlement website, the long-form notice and the claim form online within 14 calendar days, with notices emailed or mailed to investors in the same window. Claims and requests for exclusion would be due no later than 75 days after the notice date, objections at least 21 days before the final hearing, and the final hearing itself at least 125 days after the preliminary approval order. Investors in securities settlements usually file a claim with their trading records for the class period, and each payment is calculated from a plan of allocation based on when shares were bought and sold. Attorneys’ fees, expenses and administration costs approved by the court are paid from the $11.5 million before investors are. Open Class Actions will update this page when the court rules and a settlement website is available.Questions
Can CS Disco investors file a claim yet?
No. The $11.5 million settlement still needs preliminary approval from the district judge; a magistrate judge recommended approval on October 7, 2026. A claim form, a settlement website and a claim deadline normally come only after the court grants preliminary approval and approves the notice plan.
Who would be covered by the CS Disco settlement?
The lawsuit was brought on behalf of investors who bought CS Disco stock between July 21, 2021 and August 11, 2022. The final class definition, including any exclusions, will be set by the settlement terms the court approves.
How much is the CS Disco securities settlement?
CS Disco agreed to pay $11.5 million, subject to court approval, according to its quarterly report for the period ending June 30, 2026. The company recorded an insurance recovery of $8.1 million against the settlement as of that date. Attorneys' fees, expenses and administration costs approved by the court would be paid from the fund before investors are paid.
Did CS Disco admit wrongdoing?
No court has found that CS Disco or its former executives violated securities law. The claims in the case are allegations, and settlements of this kind resolve claims without a finding of liability.
Sources
- CS Disco, Inc. Form 10-Q for the quarter ended June 30, 2026, Note 8, Commitments and Contingencies.
- Class action complaint (ECF No. 1), filed September 19, 2023 in the Southern District of New York (No. 1:23-cv-8270) before transfer.
- Docket, Pluymen v. CS Disco, Inc., No. 1:24-cv-00028 (W.D. Tex.), via CourtListener.
- Report and Recommendation of U.S. Magistrate Judge Mark Lane (ECF No. 130), signed October 7, 2026.
- Bloomberg Law, “Disco, Ex-CEO Agree to $11.5 Million Investor Revenue Settlement,” July 2, 2026.
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Status
Pending Preliminary Approval
Case Title
Pluymen v. CS Disco, Inc.
Case Number
1:24-cv-00028
Court
U.S. District Court, Western District of Texas
Judge
David A. Ezra
Date Filed
September 19, 2023
Settlement
$11.5 million
Official Website
Court Docket (CourtListener)
