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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInSPAC Federal Securities Litigation Analysis – US Market Advisors
While SPAC offerings may have cooled, the litigation has yet to heat up The following report provides an analysis of the exponential increase in SPAC IPOs, and the litigation that has followed, during the period of between January 2019 and April 2022 (Relevant Period). Highlights from our findings include: Newly proposed regulation may have paused […]
Can ESG-Motivated Company Actions Lead to Corporate and Securities Litigation? | The D&O Diary
ESG is a hot topic. There is a general perception in certain circles – including the D&O insurance community — that ESG awareness and activism are essential attributes of good corporate citizenship. There is even a perception in certain parts of the D&O insurance community that strong ESG credentials makes individual companies better D&O risks. […]
Terraform Labs, Founder, VC Firms Sued on Claims That Investors Were Misled
An Illinois resident sued Terraform Labs, its founder Do Kwon and several VC firms that make up the Luna Foundation Guard (LFG) on claims the defendants violated federal securities laws and misled investors. The plaintiff, Nick Patterson, filed a lawsuit seeking class action status on Friday in the Northern District of California in the hopes […]
Rare Jury Verdict in Securities Fraud Lawsuit | The D&O Diary
Regular readers of this blog know that class action securities fraud lawsuits almost never go to trial. But “almost never” is not the same as “never.” Every now and then, there is an unusual case that does go to trial. This past week, a federal court jury reached a verdict in one of those rare […]
Twitter shareholder sues Elon Musk, says company is paying a ‘chaos tax’
“Musk’s disregard for securities laws demonstrates how one can flaunt the law and the tax code to build their wealth at the expense of the other Americans,” the suit said. It quoted another Wall Street Journal article that said Twitter, plagued by confusion about Musk’s shifting plans, has frozen its hiring, fired two senior executives […]
The Continuing Problem of Frequent Filers in Securities Litigation | The D&O Diary
When Congress enacted the Private Securities Litigation Reform Act (PSLRA) in 1995, it aimed to address perceived abuses in securities class action litigation. Among the ills Congress sought to address was the prevalence in securities litigation at the time of “professional plaintiffs” — that is, repeat players who lent their names to lawyer-driven lawsuits without […]
Coinbase facing massive class action lawsuit over unregulated securities sales – CoinGeek
The suit is brought on behalf of all Coinbase users and complains that the cryptocurrency exchange has been selling securities that are unregistered with the U.S. Securities and Exchange Commission (SEC), amounting to 15 violations of securities laws, including the requirement for those selling securities to register as an exchange. Coinbase CEO Brian Armstrong is […]
New Lawsuit Reflects Cybersecurity and Coronavirus-Related Litigation Trends | The D&O Diary
Readers of this blog know that two important current litigation trends involve the filing of claims relating to cybersecurity incidents and the filing of COVID-19-related claims. A new securities class action lawsuit filed this week touched on both of these securities suit filing trends. Secure technology company Telos Corporation was hit with a securities suit […]
The SEC’s mind-boggling tale of $40 million fraud on class action administrators | Reuters
It’s no easy feat to rook securities settlement administrators, whose job, after all, is to make sure that money from settlement funds gets paid out only to investors with legitimate claims. But according to a newly unsealed indictment and simultaneous U.S. Securities and Exchange Commission complaint in federal court in Philadelphia, three alleged fraudsters managed […]
Cybersecurity-Related Securities Suit Dismissed | The D&O Diary
In an interesting development, the U.S. District Court Judge overseeing the cybersecurity-related securities class action lawsuit pending against title insurance company First American Financial Corp. has granted the defendants’ motion to dismiss. The dismissal in the case is interesting because the company had in June 2021 agreed with the SEC to enter a cease-and-desist order […]