Class Actions

Supply Chain Woes Causing Inventory Build-Up Leads to Securities Suit | The D&O Diary

In my recent round-up of the Top D&O stories of 2023, I noted that one of the key drivers contributing to the number of securities class action lawsuit filings last year was the presence of macroeconomic factors affecting company operations and financial results. Among these factors was supply chain disruption. While the pandemic-related disruptions that snarled supply chains in 2021…

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A New COVID-Related Securities Suit for the New Year | The D&O Diary

One of the most distinct securities class action lawsuit filing phenomena since the outbreak of COVID-19 in the U.S. in March 2020 has been the surge of pandemic-related securities suits,  particularly during the period 2020 through 2022. This securities suit filing trend even continued into 2023, although the incidence of COVID-related suits dwindled during the year. However, in an unexpected…

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Guest Post: Three Industry Predictions.  How Did We Do? | The D&O Diary

Prediction 1 We will see a flurry of cyber claims spill over and create Directors and Officers (D&O) claims. Insurance brokers, insurance underwriters, executives, and board members are rightly concerned with this possibility.  However, privately held companies and nonprofit organizations have not seen many cyber claims morph into D&O claims. Was this first prediction accurate? We are off base so…

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Gap In Time | The 10b-5 Daily

To establish loss causation in a securities class action does the company’s stock price have to decline immediately after the alleged corrective disclosure that revealed the truth to the market?  In Shash v. Biogen, Inc., 84 F.4th 1 (1st Cir. 2023), the court considered this question in a case involving a drug study and the FDA approval process. *** … The First Circuit,…

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U.S. Prosecutors Can Charge Foreign Officials With Bribery Under New Provision – WSJ

U.S. authorities can now prosecute foreign officials who demand or accept bribes from Americans trying to secure business, new legal firepower granted in the recently signed annual defense legislation. For the first time, a provision of the National Defense Authorization Act has made it a crime for a foreign official to ask for or take a bribe from an American person,…

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Federal Court Securities Class Action Lawsuit Filings Increased in 2023 | The D&O Diary

D&O insurers closely track the number of annual securities class action lawsuit filings. The number of annual filings can provide some indication of the insurers’ ultimate loss costs for the year. The current year’s filing patterns can also inform the insurers’ efforts to try to determine the profit-making price for their insurance product. In 2023, the number of federal court…

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Del. Supreme Court: Fraudulent Transfer Claim Not a “Securities Claim” | The D&O Diary

Public company D&O insurance policies provide entity coverage (that is, insurance for the benefit of the insured organization) only for “Securities Claims.” But what is a “Securities Claim”? That is the question that Delaware’s courts have grappled with in a long-running dispute between the telecommunications company Verizon and its insurers. The Delaware Superior Court had held in the ongoing dispute…

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US law firm Orrick hit with lawsuit over March data breach | Reuters

U.S. law firm Orrick, Herrington & Sutcliffe is facing a new class action lawsuit over a March 2023 data breach that allegedly compromised the personal information of more than 152,000 people. The lawsuit filed Friday in Oakland federal court said Orrick did not inform the alleged victims of the data breach until June, more than three months after it occurred.…

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