As I have noted before, the phenomenon of event-driven litigation has recently emerged as a significant factor in the level of securities class action filings. I distinguish this category of litigation from the kinds of allegations that in the past characterized securities litigation – that is, allegations based on financial misrepresentation or financial omissions. As restatements have become less common than in prior years, the plaintiffs’ lawyers (or at least some of them) have shifted their focus to adverse developments in company operations. Something goes wrong at the company, its share price declines, and the company gets hit with a securities suit.
‘Enforcement 40’ for 2020
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