As I have noted in numerous posts on this site (most recently here), plaintiffs’ lawyers seem drawn to filing D&O claims against companies that have experience cybersecurity incidents. But as I have also noted, the plaintiffs’ lawyers’ track record in these cases is not particularly good. However, as discussed in the following guest post by Jarett Sena, Director of Litigation Analysis, ISS Securities Class Action Services, the cybersecurity-related securities class action lawsuit pending against SolarWinds recently resulted in a significant and noteworthy settlement. This article previously was published on ISS Securities Services’ ISS Insights. I would like to thank Jarett and ISS Securities Class Action Services for allowing me to publish this 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 Jarett’s article.
Continue Reading Guest Post: SolarWinds Agrees to $26 Million Payout Over Massive Data Breach
After a several months-long lull in which relatively few SPAC-related securities suits were filed, plaintiffs’ lawyers have now in the past several days filed several new cases. The latest example is the lawsuit filed late last week against the electric scooter company Bird Global, Inc., which merged with a publicly traded SPAC in November 2021. The lawsuit comes after the company’s announcement on November 14, 2022 that due to a reporting error the company would be restating its previously published financial statements for several prior reporting periods. A copy of the November 17, 2022 complaint can be found 
Although there have been literally dozens of SPAC-related securities class action lawsuits filed since January 1, 2021, in recent months the pace of filing of these lawsuits has noticeably slowed. After an extended period when many of these suits were filed each month, during the period since May 31, 2022 only three of these suits have been filed. However, this past week, a SPAC-related securities lawsuits was filed against Core Scientific, a digital mining company that merged with a SPAC in January 2022. As discussed below, this latest filed lawsuit has several interesting features. A copy of the complaint filed against Core Scientific can be found 
The hot button topic in both the investing world and the D&O insurance world these days is “ESG.” Setting aside the fundamental problem that 
In the current difficult business environment, many businesses face a broad array of daunting business challenges, including economic inflation, rising interest rates, supply chain and labor supply disruptions, the continuing threat of COVID-19 shutdowns, and the war in Ukraine. These various circumstances not only represent potential operational hurdles they may also involve increased litigation risk as well – as I have noted on previous posts (for example, 
As I have previously noted, plaintiffs’ lawyers have over the last several months filed a plethora of securities class action lawsuit against companies that became publicly traded through a merger with a Special Purpose Acquisition Company (SPAC). Since these cases have only just been filed, few of the cases have yet reached the initial pleading hurdles. However, in a ruling last week, Central District of California Judge 
The payment technology firm Block, Inc. (formerly known as Square) has been hit with a securities class action lawsuit related to the company’s announcement earlier this year that a former employee had improperly accessed and downloaded company customer data. The new lawsuit is the latest example of the ways in which data security incidents can translate into D&O claims. The complaint, filed on October 11, 2022, can be found 
In the latest lawsuit to emerge in the aftermath of the recent SPAC frenzy, a plaintiff shareholder has filed a securities class action suit against Opendoor Technologies, a residential real estate digital platform, which merged into a publicly traded SPAC in December 2020. The SPAC involved was one of the many financial vehicles launched by the so-called “
Readers of this blog know that in recent years, plaintiffs’ lawyers have filed a number of D&O lawsuits against companies that experience cybersecurity-related incidents. Overall, the plaintiffs’ track record on these cases is at best mixed, and a number of high-profile cases have been dismissed. In the latest example of the dismissal of a cybersecurity-related securities suit, the court in the Capital One Financial Corporation data breach-related securities class action lawsuit has granted the defendants’ motion to dismiss. The September 13, 2022 dismissal order in the case can be found 
In the midst of its battles with Elon Musk over Musk’s attempt to walk away from his proposed takeover of the company, Twitter was rocked by the