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In two dismissal motion grants last week in pending SPAC-related securities suits, the respective courts’ rulings could have potential significance for other pending or prospective SPAC-related cases. The January 10, 2023, ruling in the SPAC-related suit involving DraftKings has important implications for the many pending SPAC-related cases based on short seller reports, and the January […]
More than four years after he said he had secured the funding to take Tesla off the stock market, Elon Musk will try to defend that statement in a trial that begins on Tuesday in a federal court in San Francisco. The case is brought by investors who claim Mr. Musk, the electric automaker’s chief […]
The case is unusual in that securities-fraud cases usually resolve before going to trial, such as through a settlement, said Jill Fisch, a securities-law professor at the University of Pennsylvania. The defendants in this case face “an uphill battle” in light of the judge’s pretrial decision about the veracity of Mr. Musk’s statements, she said. […]
Elon Musk is set to become the rare CEO to fight a securities class action at trial next week, where he will defend his 2018 tweet announcing he had “funding secured” to take Tesla Inc private. Musk is essentially doubling down after suffering an initial setback last year, when the judge in San Francisco federal […]
But it’s an open question if plaintiff’s firms will bring a wave of similar cases based on Klausner’s research. Delaware Vice Chancellor Lori Will asked the law professor if the upshot of his claim was that there had been “a massive, industrywide breach of fiduciary duty.” Klausner told the judge that three lawsuits he’s involved […]
FTX customers going outside bankruptcy court to recover losses from Sam Bankman-Fried’s failed crypto empire are using a legal path that has worked in past collapses such as WorldCom and Enron: They’re going after the supposed enablers. Laws that freeze claims against debtors in bankruptcy don’t apply to third parties. So customers have filed more […]
As I noted in my recent round-up of D&O insurance issues, one of the consequences of the end of the SPAC IPO boom is that many of the SPACs from the IPO classes of 2020 and 2021 have given up trying to find a merger target and instead have opted to liquidate – which raises […]
In a remarkable year of class action activity, investors across the globe agreed to settlements totaling over $7.4 billion[1] in 2022, a greater than 75% increase from 2021…. *** Of the top ten U.S. settlements listed, three occurred in the Southern District of New York, while two occurred in the Northern District of California. Five […]
The directors’ and officers’ liability environment is always changing, but 2022 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 2023 – and possibly for years to come. I have set out below the Top Ten […]
FTX customers filed a class action lawsuit against the failed crypto exchange and its former top executives including Sam Bankman-Fried on Tuesday, seeking a declaration that the company’s holdings of digital assets belong to customers. *** FTX pledged to segregate customer accounts and instead allowed them to be misappropriated and therefore customers should be repaid […]