Tag: COVID-19

New Lawsuit Reflects Cybersecurity and Coronavirus-Related Litigation Trends | The D&O Diary

Readers of this blog know that two important current litigation trends involve the filing of claims relating to cybersecurity incidents and the filing of COVID-19-related claims.  A new securities class action lawsuit filed this week touched on both of these securities suit filing trends. Secure technology company Telos Corporation was hit with a securities suit following a decline in the…

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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 shareholder filed a securities class…

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Cheesecake Factory Penalty Signals Shift In SEC Virus Focus – Law360

On Dec. 4, the U.S. Securities and Exchange Commission brought its first enforcement action charging a public company, The Cheesecake Factory Inc., with misleading investors about the financial effects of the pandemic.[1] The case is significant because it shows that the agency is moving past its initial bout of enforcement activity targeting blatantly fraudulent activity involving COVID-19. Recent public remarks…

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Red flags for directors: SEC may take magnifying glass to disclosures involving significant judgments in COVID-19 era – Lexology

During a discussion of red flags that should draw directors’ attention, Ms. Stone noted that the SEC may take a magnifying glass to disclosures involving significant judgements and estimates, particularly in the current economic conditions. She quoted her former colleague Steven Peikin, previous Co-Director of the Division of Enforcement, who stated in a speech at a recent securities enforcement forum:…

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There is no wave of COVID-19 shareholders’ class actions (yet) – Reuters

Remember back in mid-March, when the stock market was gyrating and businesses were just beginning to reckon with COVID-19 lockdowns? Corporate defense firms warned that opportunistic shareholders’ lawyers were poised to pounce. Plaintiffs’ lawyers said at the time that they were in no rush to bring class actions against companies that failed to anticipate the impact of the coronavirus or…

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COVID-19 and D&O Insurance: July Update | The D&O Diary

As we enter the fifth month of the coronavirus outbreak in the U.S., the COVID-19-related D&O claims continue to accumulate. There have now been a total of 16 COVID-19-related securities class action lawsuits filed. The lawsuits filed so far fall into three basic categories: (1) cases involving companies that experienced COVID-19 in their facilities (such as the lawsuits against cruise…

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DOJ And SEC Divide And Conquer To Police Coronavirus-Related Securities Fraud | Vinson & Elkins LLP – JDSupra

In early June, federal agencies brought some of the first enforcement actions against COVID-19 securities fraudsters, involving over $100 million in fraudulent claims and profits, making good on their promise to investigate and prosecute those seeking to fraudulently capitalize on the COVID-19 crisis. The cases generally involve misleading claims about companies’ ability to supply COVID-19 testing or protection products, but…

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