Securities Litigation

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As noted in prior posts on this site, trouble recently has been brewing in the private credit market. Borrower defaults have led to bankruptcies, civil lawsuits, and even criminal indictments. D&O litigation has now arrived on the lender side as well, as earlier this week an investor filed a securities class action lawsuit against BlackRock TCP Capital Corp, the private credit arm of finance giant BlackRock. As discussed below, the new lawsuit highlights the ways in which the current turbulence in the private credit sector can translate into D&O claims, including in particular claims against private credit lenders. A copy of the BlackRock TCP Capital complaint can be found here. Continue Reading Private Credit Lending Firm Hit with Securities Suit

The filing of AI-Washing related securities suits is by now a well-established phenomenon. But a securities suit filed earlier this week presents an interesting new variant on this phenomenon. The new lawsuit alleges that the defendant company used the announcement of a supposed AI-related “collaboration” with Microsoft allegedly to “pump” the company’s share price just before disclosing an at-the-market private placement. As discussed below, the new lawsuit is just the latest in a recent series of securities class action lawsuits alleging share price pumping schemes.Continue Reading Securities Suit Alleges AI-Washing Stock Price “Pump”

Edgar A. Neely IV
Scott N. Sherman

The arrival of a securities class action lawsuit can be and often is a watershed moment in the life a public company. In the following guest post, Edgar A. Neely IV and Scott N. Sherman provide a basic briefing for directors concerned about securities litigation. Edgar and Scott are both partners at the Nelson Mullins law firm. I would like to thank Edgar and Scott for allowing me to publish their article on this site. Here is the authors’ article.Continue Reading Guest Post: New Year’s Primer for Directors: Things to Know About Shareholder Litigation

According to the latest report from ISS Securities Class Action Services, there were two court-approved securities class action lawsuit settlements in 2025 large enough to make the firm’s annual list of the Top 100 U.S. Class Action Settlements. These two 2025 settlements took place in a year in which the number of cases resolved, average and median settlement amounts, and even the number and total value of “mega settlements” ($100 million+) all declined compared to 2024. The details of the 2025 court approved settlements, including with respect to the two largest of the year, can be found in the ISS SCAS report, here.Continue Reading ISS Releases Top 100 Securities Suit Settlements List

After three straight years of increases in the number of federal court securities class action lawsuit filings, the number of federal court securities suits decreased in 2025 relative to 2024, to the lowest level since 2021, according to the latest annual report from NERA Economic Research Associates. In addition, the annual number of dismissals increased…

Sarah Abrams

In the following guest post, Sarah Abrams, Head of Claims Baleen Specialty, a division of Bowhead Specialty, takes a look at the way in which companies’ operations and disclosures about safety issues  can translate into securities litigation. I would like to thank Sarah for allowing me to publish her article as a guest post on this site. Here is Sarah’s article.Continue Reading Guest Post: Rollercoaster

After two consecutive years in which the annual number of federal court securities class action lawsuit filings increased, the number of federal court securities class action lawsuit filings decreased slightly in 2025 compared to 2024, to the lowest level since 2022. The number of federal court securities class action suit filings during past year reflected the impact of several ongoing securities lawsuit filings trends, such as the new lawsuit filings relating to artificial intelligence (AI) and cryptocurrencies. The slight decline in the annual number of filings reflects the diminishing impact of certain long-term trends that waned during the year, as discussed below. Continue Reading Federal Court Securities Suit Filings Declined Slightly in 2025

The possibility of a securities class action lawsuit being filed against a company after it experiences a data breach is a long-standing risk. For most of 2025, there were relatively few of these kinds of suits filed, at least compared to recent years. However, last week, two different companies – the e-commerce firm Coupang and the application security firm F5 – were each hit with new cybersecurity-related securities class action lawsuits. The new lawsuits have several interesting features, as discussed below, and at a minimum underscore the fact that the threat of these kinds of cybersecurity suits is ongoing.Continue Reading Two Tech Companies Hit with Data Breach-Related Securities Suits

As readers of this blog know, in recent months there have been a number of AI-related corporate and securities suits filed against companies and their executives (as discussed, for example, here). In general, these suits have mostly involved “AI-washing” allegations – that is, allegations that the defendant company misrepresented its AI-related prospects or capabilities. More recently, however, the cases increasingly have involved allegations not that the defendant company overstated its AI-related opportunities, but rather understated its AI-related risks.

Last week, in the latest example of this type of suit, a plaintiff shareholder filed a derivative suit against executives of the digital ad tracking firm DoubleVerify, alleging that the defendants had caused the company to omit to disclose that AI-related developments were undercutting the company’s revenues. A copy of the derivative suit complaint can be found here.Continue Reading Digital Ad Analytic Firm Hit With AI-Related Disclosure Suit

Nessim Mezrahi
Stephen Sigrist

In the following guest post, Nessim Mezrahi and Stephen Sigrist analyze financial market trends to assess the recent variances in the U.S. securities litigation risk. Nessim Mezrahi is co-founder and CEO, and Stephen Sigrist is a senior vice president, at SAR LLC. SAR previously published this data on their U.S. Securities Litigation Risk Management Report – Nov. 2025, here. I would like to thank Nessim and Stephen for allowing me to publish their article on my site.Continue Reading Guest Post:  Deterioration in U.S. Securities Litigation Risk