As we enter the fifth month of the coronavirus outbreak in the U.S., the COVID-19-related D&O claims continue to accumulate. There have now been a total of 16 COVID-19-related securities class action lawsuits filed. The lawsuits filed so far fall into three basic categories: (1) cases involving companies that experienced COVID-19 in their facilities (such as the lawsuits against cruise lines Carnival Corporation and Norwegian Cruise Lines and private prison operator The Geo Group); (2) cases involving companies that are alleged to have made misrepresentations about the company’s ability to gain from the pandemic (such as lawsuits against diagnostic testing company Co-Diagnostics and vaccine maker Inovio); and (3) cases involving companies that have experienced financial issues or operating disruptions as a result of the pandemic (such as the lawsuit against Elanco Animal Health and Colony Capital). There are a couple of cases that do not fall into one of these three categories, such as the PPP-related lawsuit filed against Wells Fargo, and the privacy-related lawsuit filed against Zoom.
‘Enforcement 40’ for 2020
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