‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInThe 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 […]
Marriott Data Breach-Related Securities and Derivative Suits Both Dismissed | The D&O Diary
Shortly after Marriott International’s November 2018 announcement that it had uncovered a data breach in the guest registration system of Starwood (which Marriott had acquired two years earlier), the company was hit with a raft of litigation, including both securities class action lawsuits and shareholder derivative lawsuits. In twin June 11, 2021 opinions, the federal […]
‘Another Avenue Plaintiffs Have Pivoted To’: The Rise of SPAC-Related Securities Litigation is New, but Maybe Not Novel | National Law Journal
Saltzstein discusses why we’re now seeing more lawsuits targeting these transactions despite the fact that SPACs themselves are not new. In her estimation, the allegations in these cases are not unique or groundbreaking, but the trend is being driven by the plaintiffs bar turning its attention toward SPACs perhaps simply because of the sheer number […]
Tracking Two Emerging Securities Litigation Trends: SPACs and Supply Chain Disruption | The D&O Diary
Electric vehicle battery company Romeo Power, which became a publicly traded company through a December 2020 merger with a SPAC, has been hit with a securities class action lawsuit following a share price decline after its announcement of a disruption in its supply chain. The new lawsuit is interesting both because of the SPAC angle […]
Is SPAC-Related Legal Action About to Heat Up? | The D&O Diary
Anyone reading the business pages know that SPAC IPO activity continues to surge; indeed, we have not yet even officially completed 2021’s first quarter, yet the number of SPAC IPOs completed and the amount of funding raised have both already exceeded the totals for the full year 2020. As I have already noted in prior […]
SolarWinds stockholders begin documenting financial losses
A judge approved the merger of three separate class action lawsuits filed against SolarWinds over a 2020 hack and named a New York City pension fund as lead plaintiff as the organization laid out tens of thousands of dollars in stock losses that it claims resulted from the hack. On Jan. 4, 2021, shareholder Timothy […]
Tesla investor sues Elon Musk, claims tweets violate SEC settlement
Tesla chief executive Elon Musk and the board of the electric car company have been sued by a shareholder who accused Musk of violating his 2018 settlement with the Securities and Exchange Commission over his Twitter use. According to a complaint unsealed late Thursday in Delaware Chancery Court, Musk’s “erratic” tweets, including a post last May […]
Why A Surge Of COVID-19 Securities Suits Hasn’t Happened – Law360
But after 12 months, only about 25 proposed securities class actions tied to the pandemic remain active in federal courts, according to an analysis by Law360. Six of those have come in 2021, suggesting that the flow of such cases may continue, but not at the level some may have anticipated early on. “My sense […]
Biotech Firm Hit With COVID-19-Related Securities Suit | The D&O Diary
It has been nearly a year since the coronavirus outbreak in the U.S. first led to widespread closures and disruptions. Throughout that time, plaintiffs’ lawyers have continued to file securities class actions and other claims against companies affected by the pandemic. On February 12, 2021, in the latest of these COVID-19-related securities lawsuits, a plaintiff […]