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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInLyft investors keep deal on track after judge nixes charity picked for class leftovers | Reuters
In a motion for preliminary approval of the deal, Block & Leviton told U.S. District Judge Haywood Gilliam of Oakland, California, that any money remaining in the settlement fund after distributions to class members would go to the National Women’s Law Center, which assists sexual harassment victims. Calling attention to issues of sexual violence, the […]
Electric Scooter Company Hit With SPAC-Related Securities Suit | The D&O Diary
After a several months-long lull in which relatively few SPAC-related securities suits were filed, plaintiffs’ lawyers have now in the past several days filed several new cases. The latest example is the lawsuit filed late last week against the electric scooter company Bird Global, Inc., which merged with a publicly traded SPAC in November 2021. […]
Online Clothing Company Hit With COVID-19-Related Securities Suit | The D&O Diary
As I have noted previously (most recently here), there have been a number of COVID-19-related securities class action lawsuits filed since the initial coronavirus outbreak in the U.S. in March 2020. But while these lawsuits have continued to be filed since the outset of the pandemic, as time has gone by, it has become increasingly […]
PLUS Panelists: New SEC Disclosure Rules May Drive Up D&O Claims
New rules proposed by the US Securities and Exchange Commission on cybersecurity and climate impact disclosures may generate more lawsuits that will generate claims against directors & officers policies, panelists said Wednesday during the Professional Liability Underwriting Society’s conference. “More disclosure, more securities litigation,” said attorney Noelle M. Reed, a partner with the Skadden law […]
Wood Products Company Hit with ESG “Greenwashing” Securities Suit | The D&O Diary
The hot button topic in both the investing world and the D&O insurance world these days is “ESG.” Setting aside the fundamental problem that nobody actually knows what ESG is, there is the inextricably related problem that the D&O claims risk related to ESG is fundamentally misunderstood. The current basic premise in the D&O insurance […]
Apparel Company Hit with Supply Chain-Related Securities Lawsuit | The D&O Diary
In the current difficult business environment, many businesses face a broad array of daunting business challenges, including economic inflation, rising interest rates, supply chain and labor supply disruptions, the continuing threat of COVID-19 shutdowns, and the war in Ukraine. These various circumstances not only represent potential operational hurdles they may also involve increased litigation risk […]
Suits Targeting Firms Seeking to Boost Minorities Highlight ESG Risks | The D&O Diary
As I have previously noted (most recently here), something of an anti-ESG backlash has started to take shape, at least in certain quarters. Legislatures in several states have passed legislation prohibiting state pension funds from investing in ES- focused investments or prohibiting the state from doing business with companies that boycott certain industries. The backlash […]
Elon Musk Faces Investors in Court Over Tweet to Take Tesla Private – Bloomberg
Investors who filed suit over Elon Musk’s 2018 tweet stating that he was considering taking Tesla Inc. private are facing a crucial test in court. A federal judge in San Francisco will hear arguments Tuesday over whether Musk was intentionally deceitful when he unveiled the proposal to his millions of Twitter followers and said “funding […]
Payments Company Hit With Data Breach-Related Securities Suit | The D&O Diary
The payment technology firm Block, Inc. (formerly known as Square) has been hit with a securities class action lawsuit related to the company’s announcement earlier this year that a former employee had improperly accessed and downloaded company customer data. The new lawsuit is the latest example of the ways in which data security incidents can […]
Elon Musk Sued by Investor Over Manipulate Twitter Stock Price – Bloomberg
Elon Musk was sued by a Twitter Inc. investor who says the world’s richest person’s on-again off-again purchase of the social-media platform and his public attacks on the company were designed to manipulate its stock price. Giuseppe Pampena says that when Musk agreed last week to go ahead with his purchase of Twitter, at the […]