Archives: Securities Litigation

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Connecticut State Court Knocks Out Post-Cyan Securities Act Liability Action

In the wake of the U.S. Supreme Court’s March 2018 Cyan decision, in which the Court affirmed that state court’s retain concurrent jurisdiction for liability action under the ’33 Act, plaintiffs’ lawyers have initiated a number of Section 11 actions in the courts of a number of states. This new wave of state court Securities … Continue Reading

Zendesk Hit with Data Breach-Related Securities Suit

In the latest example of a securities class action lawsuit arising out of data breach or other cybersecurity incident, on October 24, 2019, a plaintiff shareholder filed a securities class action lawsuit against California-based software company Zendesk. The lawsuit follows after the company announced disappointing second quarter financial results in July and then announced in … Continue Reading

Data Breach-Related Securities Suit Filed Against Capital One

In the latest securities class action lawsuit to be filed against a company that has experienced a data breach or other cybersecurity incident, a plaintiff shareholder has filed a securities suit against Capital One in connection with the company’s recent massive data breach. While there have been a number of data breach-related securities suits before, … Continue Reading

Facebook Privacy-Related Securities Suit Dismissed Without Prejudice

Two of the most prominent examples of the rise of privacy-related securities class action lawsuits are the Cambridge Analytica scandal-related suit filed against Facebook in March 2018, and the Earnings Miss/GDPR-readiness and compliance-related securities suit filed against Facebook in July 2018. These two lawsuits were ultimately consolidated. In an interesting and detailed September 25, 2019 … Continue Reading

A Critique of the Delaware Chancery Court Decision on Federal Forum Provisions

After the U.S. Supreme Court’s March 2018 decision in the Cyan case that state courts retain concurrent jurisdiction for ’33 Act liability actions, one idea that circulated was that companies could avoid securities class action lawsuits in state court by adopting a charter provision designating a federal forum for these kinds of suits. Unfortunately, in … Continue Reading

Isn’t It Ironic? Litigation Funding Firm Hit With Securities Suit

In a development that some may find more than a little bit ironic, U.K.-based litigation finance firm Burford Capital has been hit with a securities class action lawsuit following a drop in its share price after a short seller published a report questioning the company’s financial reporting. Burford has denied the short seller’s allegations and … Continue Reading

Bribery-Related Securities Suit Based on Acquired Company’s Pre-Merger Activities

As I have frequently noted on this site (most recently here), plaintiffs’ lawyers often attempt to fashion a securities lawsuit out of on revelations of corporate activities involving alleged violations of anti-bribery laws. A securities class action lawsuit filed this week represents the latest example of this phenomenon. In this instance, the allegedly improper conduct … Continue Reading

Guest Post: Working Hard or Making Work? Plaintiffs’ Attorneys Fees in Securities Fraud Class Actions

In the following guest post, Stephen J. Choi, Jessica M. Erikson, and Adam C. Pritchard take a look at the plaintiffs’ attorney fee awards in “mega-settlements” in securities class action lawsuits. The authors ask the question whether the lawyers who lead these cases and negotiate the settlements are appropriately rewarded for their efforts. Choi is … Continue Reading

Guest Post: Time To Resolve Post-Cyan Securities Class Action Confusion

In numerous prior posts on this site (for example, here), I have written about the problems caused by the U.S. Supreme Court’s March 2018 decision in Cyan, Inc. v. Beaver County Employees Retirement Fund. In the following guest post, Nessim Mezrahi, cofounder and CEO of SAR, a securities class action data analytics and software company, … Continue Reading

Federal Court Securities Suit Filings at Near Record Pace in Year’s First Half

Plaintiffs filed federal court securities class action lawsuits at  “near-record levels” during the first six months of 2019, according to a new report from Cornerstone Research. The July 31, 2019 report, entitled “Securities Class Action Filings: 2019 Midyear Assessment,” notes that the elevated filing levels continued in the year’s first half despite reduced numbers of … Continue Reading

Ontario-Based Firm is Latest Canadian Cannabis Company Hit with U.S. Securities Suit

One of the things that happened both in the lead up to and in the wake of the October 2018 legalization of cannabis-based products in Canada is that a number of Canada-based cannabis companies listed their shares on U.S. securities exchanges. From the outset, D&O insurers have regarded the cannabis companies as a distinct risk … Continue Reading

Securities Suit Filings Remain at Heightened Pace in Year’s First Half

During the first six months of 2019, federal court securities class action lawsuit filings remained well above historical levels and roughly on pace with the elevated filing levels in 2018. The number of federal court securities suit filings was significantly increased by the number of federal court merger objection lawsuit filings; however, even disregarding the … Continue Reading

U.S. Supreme Court Denies Cert in Toshiba Unsponsored ADRs Securities Suit

As I noted in a recent post, the securities class action lawsuit pending against Toshiba raises the question of whether or not the U.S. securities laws apply to transactions in unsponsored American Depository Receipts (ADRs). The company’s petition to the U.S. Supreme Court posed the larger question of whether there are exceptions to the second-prong … Continue Reading

Guest Post: An Analytical Approach To Defending Securities Class Claims

In the following guest post, Nessim Mezrahi, cofounder and CEO of SAR, a securities class action data analytics and software company, takes a look at possible defenses to securities class action lawsuits that corporate defendants may have based on analysis of the claimed stock price declines involved. A version of this article previously appeared on … Continue Reading

Chubb Sounds Securities Litigation Alarm, Calls for Reform

Regular readers of this blog know that the statistics surrounding U.S. securities litigation in recent years are nothing short of alarming, including, for example, both record numbers of lawsuits and record percentages of listed companies sued. Severity trends are concerning as well. All of these trends are exacerbated by the impact of the U.S. Supreme … Continue Reading

More About State Court Secondary Offering-Related Securities Class Action Suits

In a recent post, I commented on the settlement of a state court securities class action lawsuit relating to the defendant company’s secondary offering, suggesting in the post among other things that the state court suit was noteworthy because it was the first state court secondary offering-related securities suit of which I was aware. In … Continue Reading
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