Companies in the pharmaceutical industry are frequent targets of securities class action lawsuits. In the following guest post, Tony Kriesel, Claims Specialist with IQUW; Elan Kandel, a Member of the Bailey Cavalieri law firm; and James Talbert, an Associate at Bailey Cavalieri, take a look at the reasons for the pharmaceutical industry’s high securities litigation frequency experience and at the implications of the lawsuit frequency for pharmaceutical companies and their insurers. They also consider the significance of the interrelated claims provision typically found in D&O insurance policies for securities claims involving pharmaceutical companies. I would like to thank the authors for allowing me to publish their article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Here is the authors’ article.
Continue Reading Guest Post: D&O Risks and Challenges for Pharmaceutical Companies and their Insurers

In the surge of SPAC-related litigation that has been filed this year, one of the distinctive features of the filings has been that many of the lawsuits have followed shortly after a short seller published a report critical of the defendant company. In the latest example of this phenomenon, a shareholder has filed a securities class action lawsuit against biotech firm Ginkgo Bioworks Holdings, which merged with a SPAC in September 2021, after the company’s share price declined following the publication of a negative short seller report. As discussed below, this new lawsuit has several other features in common with the SPAC-related securities lawsuits filed this year. A copy of the November 18, 2021 complaint against Ginkgo Bioworks can be found here.
Continue Reading Shareholders Sue Post-SPAC-Merger Biotech Firm After Short Seller Attack

One of the most substantial securities litigation phenomena so far in 2021 has been the rising tide of securities litigation relating to SPACs and SPAC-acquired companies. In the latest example of this type of lawsuit, a plaintiff shareholder has filed a securities class action complaint against Owlet, Inc., a company that sells baby health products and that was in July 2021 merged with a SPAC. The defendants named in the lawsuit include not only officers of Owlet itself but also include certain former directors and officers of the SPAC. A copy of the November 17, 2021 complaint against Owlet can be found here.
Continue Reading Post-SPAC-Merger Baby Product Company Hit with SPAC-Related Securities Suit

On November 12, 2021, a Chinese court entered a 2.46-billion-yuan ($385.26 million) verdict in a collective investor action against Kangmei Pharmaceuticals, certain of the company’s executives and the company’s outside auditor. The action was the first of its kind in China. The claimants in the case had alleged that the company had engaged in massive accounting fraud by inflating its revenues, profits, and cash. The verdict in the case follows a July 2021 public hearing in the case. A copy of a November 12, 2021 Global Times article about the verdict can be found here. A November 12, 2021 Reuters article about the verdict can be found here.
Continue Reading First-Ever Chinese Collective Investor Action Results in $385 Million Damages Verdict

A Canadian-based deep-sea mining company is the latest firm to be hit with a SPAC-related securities class action lawsuit. The company, which plans to mine the seabed for materials to be used in electric vehicles batteries, merged with a SPAC in September 2021. The company’s share price recently declined following news reports and a short-seller report questioning the company’s financing, licensing, and its claimed sustainability credentials. A copy of the October 28, 2021 complaint can be found here.
Continue Reading Deep-Sea Mining Company Hit with SPAC-Related Securities Suit

Jeffrey Lubitz

In the following guest post, Jeffrey Lubitz, Executive Director of ISS Securities Class Action Services, reflects on the 20th anniversary of the Enron scandal and considers the meaning of Enron for institutional investors. A version of this article was also published on the ISS Securities Class Action Services website. I would like to thank Jeff for allowing me to publish his article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Here is Jeff’s article.
Continue Reading Guest Post: 20 Years Later: Why the Enron Scandal Still Matters to Investors

In the latest SPAC-related securities class action lawsuit filing, a plaintiff shareholder has filed a securities class action suit against electric vehicle company Lightning eMotors and certain of its directors and officers, after the company disappointed investors in its first post-SPAC-merger financial release. As discussed below, the Lightning eMotors SPAC-merger transaction was already the subject of a separate, prior Delaware Chancery Court action. A copy of the new federal court securities class action lawsuit complaint can be found here.
Continue Reading Electric Vehicle Company Hit with Post-SPAC-Merger Securities Suit

Hyzon Motors, a hydrogen fuel cell vehicle development company that merged with a SPAC in July 2021 and that was the subject of a recent scathing short seller report, has been hit with a securities class action lawsuit. The defendants in the lawsuit include two former officers of the SPAC with which Hyzon merged. A copy of the September 30, 2021 complaint filed against Hyzon can be found here.
Continue Reading Fuel Cell Vehicle Company Hit With SPAC-Related Securities Suit Following Short Seller Report

Jeffrey Lubitz
Duncan Paterson

In the following guest post, Jeffrey Lubitz and Duncan Paterson take a look at the increasing numbers of class action lawsuits being filed against non-U.S. companies, and in particular how ESG issues may be the driving factor in multi-country cases. Jeff is the Executive Director of ISS Securities Class Action Services and Duncan Paterson is the Head of ESG Thought Leadership Program, ISS ESG. A complete copy of this article is available on the ISS Securities Class Action Services website, here. I would like to thank Jeff and Duncan for allowing me to publish their article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Here is Jeff and Duncan’s article.
Continue Reading Guest Post: Growing Number of Non-U.S. Companies Facing Class Actions