The pandemic officially ended well over a year ago, but the pandemic’s effects continue to ripple through the economy and affect company’s operations and financial results. Moreover, these effects continue to translate into securities class action litigation. The latest example is the lawsuit filed earlier this week against the Canadian defense software company CAE, Inc., which was sued after the disruptive effects of the pandemic caused certain of its fixed-price long-term contracts to be more costly and less profitable, notwithstanding the company’s assurances that it was managing the “ongoing challenges posed by the pandemic.” A copy of the July 16, 2024, complaint in the lawsuit can be found here.Continue Reading Defense Firm Hit with COVID and Supply Chain Disruption-Related Securities Suit

Here at The D&O Diary, our job is to watch for emerging trends in corporate and securities litigation. There is plenty to watch. Because we are always so attentive to what is new, it sometimes surprises us when a development appears that reflects an old or even seemingly played-out trend. That was our reaction to seeing the new COVID-related complaint filed this week against the health Insurer Humana, in which the plaintiff alleges that the company misled investors about the company’s rising costs associated with increased patient utilization rates due to post-pandemic pent-up demand. It is, in fact, a little surprising that even now, more than four years after the coronavirus first emerged in the U.S., COVID-related lawsuits are still being filed. A copy of the Humana complaint can be found here.Continue Reading Health Insurer Hit with COVID-Related Securities Suit

The COVID-19 pandemic was a disruptive event with the consequences continuing to reverberate through the economy and the business environment, in ways that not only affect companies’ operations and financial performance, but, for at least some companies, in ways that lead to securities class action litigation. So even though the initial COVID-19 outbreak in the U.S. was over four years ago, businesses continue to experience operational consequences from the pandemic, in some cases resulting in securities suits. The latest example is the lawsuit filed late last week against medical testing and diagnostic company QuidelOrtho Corporation, whose testing services revenue declined as the coronavirus transition to endemic status. A copy of the April 12, 2024, complaint against QuidelOrtho can be found here.Continue Reading Diagnostic Testing Company Hit With COVID-Related Securities Suit

Readers know that since the initial coronavirus-related outbreak in the U.S. in March 2020, I have been tracking the COVID-related securities suit filings. Even though the four-year mark since the initial outbreak recently passed, and even though it has now been a considerable amount of time since businesses fully reopened from government shutdowns, COVID-related securities suits continue to be filed. Earlier this week, a plaintiff shareholder filed a securities lawsuit against health services management company Agilon Health, in which the plaintiff alleged that the company had understated the impact of the COVID-19 on patient utilization rates, thereby overstating key financial metrics. A copy of the April 2, 2024, complaint can be found here.Continue Reading Health Services Management Company Hit with COVID-19 Related Securities Suit

   

I think we all recognize that the disruptions from the COVID pandemic continue to reverberate through the economy. Many industries and many companies are still trying to get back to equilibrium. The pandemic continues to impact companies, their operations, and their financial results. A new lawsuit filed against the sporting goods retailer Dick’s Sporting Goods(DSG)  illustrates how the pandemic-related factors continue to affect companies and translate into securities litigation. DSG was one of the companies that prospered at the outset of the pandemic; when conditions normalized, the company claimed it would be able to keep the positive momentum going. However, after the company announced disappointing results, its share price declined, and now a shareholder plaintiff has filed a securities class action lawsuit, in the latest in a series of COVID-related securities suits. A copy of the February 16, 2024, lawsuit against the company can be found here.Continue Reading COVID-Related Results Lead to Securities Suit    

A few days ago when I published a post discussing a new COVID-19-related securities lawsuit I expressed my surprise that pandemic-related suits were still being filed in 2024, particularly after the pace of new coronavirus-related suits tailed off completely in the latter half of 2023. Well, it appears that the recent new case filing not just a single anomaly, as this past week yet another new pandemic-related securities lawsuit was filed.

On January 19, 2024, a plaintiff shareholder filed a securities suit against BioVie, a developmental stage biotech company, after the company reported that clinical trials for its Phase 3 drug candidate produced results the company concluded deviated from protocols and Good Clinical Practice (GCP) because the pandemic had limited patient access to clinical trial sites. A copy of the new complaint can be found here.Continue Reading Biotech Hit with Securities Suit After Pandemic Impact on Clinical Trials

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 development, a plaintiff shareholder has now filed yet another COVID-related securities suit against BioNTech, the German biotechnology company that, along with its partner Pfizer, was lionized for helping to develop a COVID-19 vaccine. The company was hit with a securities suit after its share price declined following a sizeable inventory write-off. A copy of the January 12, 2024, complaint against the company can be found here.Continue Reading A New COVID-Related Securities Suit for the New Year

As I have documented on this site, many COVID-related securities suits have been filed since the initial outbreak of the pandemic in March 2020. At the core of many of these lawsuits are corporate claims that the defendant companies were positioned to profit from the pandemic. The U.S. Department of Justice now reports that a biotech executive has pleaded guilty to securities fraud and other charges in connection with his company’s false claims at the outset of the pandemic that it had developed a new blood-based test for COVID-19. A copy of the Department of Justice’s December 8, 2023, press release about the guilty plea can be found here.Continue Reading Biotech Exec Pleads Guilty to COVID-Related Securities Fraud

The COVID-19-related public health crisis ended earlier this year; the CDC declared the end of the public health emergency in May. While the pandemic may be over, many of the changes that the pandemic wrought remain. Some of these changes resulted in significant alterations to the operating environment for many businesses. The difficulties that businesses face in trying to adapt to the new environment has, in turn, and at least for some businesses, translated into securities lawsuits. The latest example of this phenomenon is the lawsuit filed last week against clinical trial company Syneos, whose business operations were not only disrupted by the pandemic, but also changed in ways that caused ongoing disruption the company’s business and financial results. The lawsuit alleges that the company and its executives misrepresented both the company’s response to the pandemic and to the changed business circumstances the company faced due to the pandemic. A copy of the July 27, 2023, complaint filed against the company can be found here.Continue Reading Clinical Trials Company Hit with COVID-Related Securities Suit

From the very beginning of the COVID-19 outbreak in March 2020, one related phenomena that immediately became apparent was the emergence of coronavirus-related securities class action lawsuits and other corporate and securities litigation. I have been tracking the COVID-related securities litigation since the very beginning, and now, even though we are now well into the pandemic’s fourth year, the COVID-related securities suits are continuing to be filed. In the latest example of a COVID-related securities suit filing, a plaintiff shareholder this week sued Danaher Corporation for the company’s disclosures related to the impact of the pandemic on the company’s sales. This latest filing suggests that the COVID-19-related securities litigation phenomenon may have further to go yet. A copy of the complaint in the new lawsuit against Danaher can be found here.Continue Reading Danaher Hit with COVID-Related Securities Suit Filing