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.
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Podcast: Why Federal Securities Suits Don’t Belong in State Court
As readers will recall, in August, the U.S. Chamber of Commerce Institute for Legal Reform (ILR) issued a paper entitled “Courting Confusion: Federal Securities Class Actions Don’t Belong in State Courts,” in which the ILR called for Congress to require that all ’33 Act claims must be brought in federal court and authorize the removal
Fuel Cell Vehicle Company Hit With SPAC-Related Securities Suit Following Short Seller Report
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.
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Guest Post: Growing Number of Non-U.S. Companies Facing Class Actions
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.
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AgTech Company Hit with SPAC-Related Securities Lawsuit
In the latest SPAC-related securities class action lawsuit filing, a plaintiff shareholder has initiated a securities suit against Agtech company AppHarvest, alleging material misrepresentations after the company recently experienced a stock price drop. A copy of the plaintiff’s September 24, 2021 securities class action lawsuit complaint can be found here.
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Cybersecurity-Related Securities Suit Dismissed
In an interesting development, the U.S. District Court Judge overseeing the cybersecurity-related securities class action lawsuit pending against title insurance company First American Financial Corp. has granted the defendants’ motion to dismiss. The dismissal in the case is interesting because the company had in June 2021 agreed with the SEC to enter a cease-and-desist order and to pay a modest civil penalty to settle charges related to the same cybersecurity incident. The dismissal is also interesting because it shows how plaintiffs’ lawyers have struggled to get traction with cybersecurity-related securities suits. A copy of the Court’s September 22, 2021 order granting the motion to dismiss in the First American securities suit can be found here.
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Webinar: SPAC and De-SPAC Litigation, Regulation, and Investigations
On September 28, 2021, I will be participating on a panel as part of a webinar being put on by Sandpiper Partners LLC entitled “SPACs, De-SPACs, and SPAC Litigation.” The webinar, which is free, will run from 10:00 am to 1:00 p.m. EDT. I will be a panelist in the session entitled “Securities and Corporate
Twitter Settles Securities Suit for $809.5 Million
The parties to the long-running Twitter securities class action lawsuit have agreed to settle the suit for a payment of $809.5 million, one of the largest securities class action settlements of all time. The settlement is subject to court approval. A copy of the company’s September 20, 2021 press release announcing the settlement can be found here. The plaintiffs’ lawyers’ statement about the settlement can be found here.
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New York State Court Enforces Federal Forum Provision
In an important development affirming the use of federal forum provisions (FFP) to avoid duplicative parallel state court securities lawsuits, a New York state court judge has granted the securities suit defendants’ motion to dismiss based on the FFP in the corporate defendant’s charter. The ruling appears to be the first in New York – indeed, the first outside of California – to enforce an FFP. The New York court’s enforcement of the FFP is a significant step in companies’ efforts to try to avoid the duplicative litigation problems caused by the U.S. Supreme Court’s March 2018 decision in Cyan. A copy of the August 31, 2021 opinion of the New York state court in the Casa Systems case can be found here.
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PLUS Webinar: SPAC and IPO-Related Litigation
On Thursday, September 23, 2021, I will be participating in a Professional Liability Underwriting Society (PLUS) webinar on the topic “SPAC and Related IPO Litigation as it has Evolved & The Current State of SEC Regulation of Disclosure.” This free, one-hour webinar will begin at 2:00 pm EDT. The session will be moderated by Greg