‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInThe Post-Cyan Section 11 Litigation Environment | The D&O Diary
Over the last two years, there have been two important judicial decisions concerning Section 11 litigation. In March 2018, the United States Supreme Court unanimously held in the Cyan case that state courts retain concurrent jurisdiction over lawsuits asserting liability claims under the Securities Act of 1933, a development that has increased the number of […]
Wells Fargo Hit with First PPP-Related Securities Class Action | The D&O Diary
In prior posts on this site (most recently here), I have suggested that D&O claims could arise in connection with the Paycheck Protection Program (PPP), a fiscal stimulus program Congress enacted as part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act). In what is as far as I know the first PPP-related securities class action lawsuit, […]
IN BRIEF: Securities class actions dropped in May amid pandemic, data shows – Reuters
The number of new federal lawsuits seeking class action status on behalf of investors seeking to recoup losses from stock drops or challenge mergers fell in May to their lowest level in four years, data released by Stanford University on Tuesday showed. Stanford’s Securities Class Action Clearinghouse, which maintains a database on securities class action […]
COVID-19 class actions: Cautionary reminders from south of the border | ICLG.com Briefing
Canadian companies have faced an unprecedented last few months in the wake of the COVID-19 pandemic and the subsequent measures to contain its spread. As the pandemic’s impacts continue to reverberate, the first round of COVID-related litigation has begun. Several COVID-related class actions have already been launched in Canada, including: Class actions against long-term care […]
Life Sciences Companies: Frequent Securities Suits Frequently Dismissed | The D&O Diary
As I have documented in prior posts (for example, here), publicly traded life sciences companies are frequent targets of securities class action lawsuits. But life sciences companies’ securities litigation exposure may be well-known, it is not always as appreciated that the securities suits against life sciences companies are often dismissed. Two recent rulings in securities […]
Securities Enforcement Activity in the COVID-19 Era: A Backstop to Private Securities Litigation | Steptoe & Johnson LLP
Securities litigation and enforcement activity often surge in times of crisis. Indeed, bedrock federal securities regulations were borne out of an extended crisis: the stock market crash of 1929 and the decade-long Great Depression that followed. COVID-19 has already set off a wave of securities litigation. These private lawsuits and putative class actions have been […]
Judge shelves Tesla shareholder lawsuit to stop Elon Musk from tweeting – MarketWatch
A Delaware judge has denied a request by attorneys for Tesla shareholders to pursue a lawsuit seeking to prevent CEO Elon Musk from using his personal Twitter account to disseminate information regarding the electric vehicle and solar panel manufacturer. Vice Chancellor Joseph Slights III ruled Tuesday that shareholder attorneys had not demonstrated a sufficient reason […]
U.S.-Listed Chinese Real Estate Firm Hit with Coronavirus-Related Securities Suit | The D&O Diary
In the latest securities suit related to the coronavirus outbreak, a plaintiff shareholder has filed a U.S. securities class action lawsuit against a Chinese real estate firm whose American Depositary Shares (ADSs) are listed on the NYSE, based on allegations that the company’s January 2020 IPO offering documents failed to disclose the impact of the […]
Non-U.S. Issuers Targeted in Securities Class Action Lawsuits Filed in the United States
Companies headquartered or with principal places of business outside the United States (“non-U.S. issuers”) continue to be targets of securities class actions filed in the United States. Indeed, 2019 continued to see an uptick in the number of securities class action lawsuits brought against non-U.S. issuers from the previous year, consistent with the general trend […]
‘Corporations don’t get a free pass because of COVID-19’- Robbins Geller’s Randy Baron – Reuters
The Robbins Geller lawyer pushed back hard against the premise that shareholders’ and plaintiffs’ lawyers should relax their vigilance now. To the contrary: “Our job, if we take our job seriously, is not to say, ‘Well, it’s a horrible time so you guys get to do horrible mergers or self-interested mergers,’” Baron said. “The corporations […]