In recent posts (here and here), I have discussed new lawsuits that represent interesting new variants of coronavirus-related securities class action claims; these new kinds of suits involve defendant companies whose fortunes had prospered at the outset of the pandemic but that later saw their financial performance  decline after the initial surge eased. In the latest example of this new variant on the pandemic-related securities litigation theme, a plaintiff shareholder has filed a securities lawsuit against computer networking firm, Citrix Systems. The complaint alleges that the company misled investors about the company’s ability to initial short-term business success as the pandemic evolved. A copy of the plaintiff’s November 19, 2021 complaint can be found here.
Continue Reading Shareholder Files New Pandemic-Related Litigation Variant Suit Against Citrix Systems

With the passage of time, the impact of the pandemic on business and commerce has evolved, both at the level of the economy as a whole and at the company-specific level. Companies that suffered early in the outbreak are now returning to form, while companies that prospered due to pandemic-related conditions are now returning to earth. One company that unquestionably flourished at the outbreak of the pandemic is home exercise equipment company, Peloton Interactive. The company’s share price has recently declined as the company has experienced declining demand for its products and services.   A new COVID-related securities lawsuit has now been filed against the company, based on allegations pertaining to the company’s alleged misrepresentations about the company’s ability to sustain its pandemic-related sales boost. A copy of the November 18, 2021 related securities suit can be found here.
Continue Reading Shareholder Sues Peloton in COVID-Related Securities Suit

Just as the coronavirus pandemic itself continues to disrupt economic and social activity, it also continues to generate COVID-related securities class action litigation. In the latest COVID-related securities suit, the vaccine development firm Novavax has been hit with a securities suit pertaining to delays the company has experienced regarding its coronavirus vaccine candidate. As discussed below, this latest lawsuit shares a number of features with other previously filed coronavirus-related securities suit. The November 12, 2021 complaint in the new Novavax lawsuit can be found here.
Continue Reading Vaccine Development Firm Hit with COVID-Related Securities Suit

An online event firm that experienced a ramp-up in users during the pandemic and that completed an IPO in early in February 2021 has been hit with a securities class action lawsuit after the company disclosed that many of the customers that signed on during the early days of the pandemic did not renew or renewed only at lower service levels. This new lawsuit is the latest of example of the ways that more than a year and half in the pandemic continues to affect businesses and continues to lead to securities class action litigation and other D&O claims. The November 3, 2021 complaint filed against ON24 can be found here.
Continue Reading Online Event Firm Hit with Post-IPO COVID-Related Securities Suit

In the latest dismissal motion ruling in a COVID-19-related securities class action lawsuit, the federal judge presiding over the securities suit filed against private prison company The GEO Group has granted the defendants’ motion to dismiss with respect to the plaintiff’s coronavirus-related allegations, while denying the motion with respect to certain of the plaintiff’s allegations unrelated to COVID-19. A copy of the court’s September 23, 2021 order can be found here.
Continue Reading COVID-19-Related Securities Claims Against Private Prison Company Dismissed

In my recent roundup of key concerns in the world of directors’ and officers’ liability, I discussed the COVID-19-related litigation phenomenon, commenting that notwithstanding the lapse of time since the coronavirus’s initial outbreak there would likely be further pandemic-related lawsuits yet to come. As if to confirm the suggestion, last week a shareholder plaintiff filed a COVID-19 related securities class action lawsuit against the actress Jessica Alba’s personal care consumer products company, The Honest Company. A copy of the plaintiff’s complaint can be found here.
Continue Reading Consumer Products Company Hit with COVID-19-Related Securities Suit

As the pandemic has progressed and as time has passed, one question I am regularly asked is whether we will continue to see COVID-19 related legal actions being filed. If the latest SEC action is any indication, we have not yet seen the last of new COVID-19-related suit filings. On August 17, 2021, the agency filed a civil enforcement action against an Ohio biotech firm claiming that the firm made false claims about one of its products, as a way to suggest that the firm was positioned to profit from the coronavirus outbreak. A copy of the agency’s complaint can be found here.
Continue Reading SEC Files COVID-19-Related Enforcement Suit Against Biotech Firm

As readers of this blog know, from the very early days of the coronavirus outbreak COVID-19 related D&O lawsuits have been filed. Just as there have been new variants of the virus itself over the course of the pandemic, there have also been variants of the D&O lawsuits. The most recent variant of the COVID-19-related D&O lawsuit is the Delaware Chancery Court complaint filed earlier this month, in which the plaintiff in the derivative action alleges that corporate insiders profited by taking advantage of a drop in the company’s share price to grant themselves lucrative stock options. A copy of a redacted version of the shareholder plaintiff’s July 9, 2021 complaint can be found here. A copy of a July 21, 2021 Proskauer law firm blog post about the lawsuit can be found here.
Continue Reading A New COVID-19-Related D&O Lawsuit Variant

Even though the worst of the pandemic crisis in the U.S. appears, at least for now, to be past, the threat of COVID-19-related claims continues. In the latest example of the continuing COVID-19-related claim threat, the SEC has initiated a COVID-19-related enforcement action against a California-based digital health care company that had made claims early in the coronavirus outbreak about the company’s ability to profit from the outbreak. The SEC’s new action is a reminder that the threat of new COVID-19-related claims is ongoing. A copy of the SEC’s July 7, 2021 complaint against Parallax Health Sciences, Inc. can be found here. The SEC’s July 7, 2021 press release about the enforcement action can be found here.
Continue Reading SEC Files COVID-19-Related Enforcement Action Against Digital Health Firm

We are now well into the second year of the COVID-19 pandemic, yet at this late date the COVID-19-related securities class action lawsuits continue to come in. In the latest example, Ocugen, a U.S.-based gene therapy development company that hoped to develop a COVID-19 vaccine, was hit with a securities class action law after a setback in its regulatory approval efforts. A copy of the plaintiff’s June 17, 2021 complaint against Ocugen can be found here.
Continue Reading Biopharma Company Hit with COVID-19-Related Securities Suit