‘Enforcement 40’ for 2020
Our Sponsors
Join Us On LinkedIn
Join the Securities Litigation and Enforcement Group on LinkedInMarriott 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 […]
NERA: 2020 Securities Suit Filings Down vs. 2019, But Above Long-Term Levels | The D&O Diary
Federal court securities class action lawsuit filings declined 22% in 2020 compared to 2019, but the 2020 filings were still above the long-term historical average annual numbers of filings, according to NERA Economic Consulting’s annual securities litigation report. The 2020 securities suit filing drop-off reflected a decline in the number of federal court merger objection […]
The Top Ten D&O Stories of 2020 | The D&O Diary
The directors’ and officers’ liability environment is always changing, but 2020 was a particularly eventful year, with important consequences for the D&O insurance marketplace. The past year’s many developments also have significant implications for what may lie ahead in 2021 – and possibly for years to come. I have set out below the Top Ten […]