Securities Litigation

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Recent securities class action lawsuit filing analyses have noted (as discussed, for example here), that the number of COVID-related securities suit filings has declined so far this year relative to last year. Arguably the more interesting observation is that these lawsuits are being filed at all in 2025, now well over five years since the initial outbreak of COVID-19 in the United States. In the latest example of the continued filing of these kinds of suits, late last week, a plaintiff shareholder filed a securities class action lawsuit against Lineage, a cold storage focused real estate investment trust (REIT). The complaint alleges that in the run-up to the company’s July 2024 IPO, the company soft-pedaled the impact of the downturn of pandemic-driven demand. The new complaint against Lineage can be found here.Continue Reading REIT Hit With COVID-Related Securities Suit

The number of securities class action lawsuits filed in the first six months of 2025 was roughly level with the number of securities suits filed in the second half of 2024, according to a new report from Cornerstone Research. The number of suits filed in the first half of 2025 is also roughly level with the historical semiannual average number of filings. The July 30, 2025, report, which Cornerstone Research produced in conjunction with the Stanford Law School Securities Class Action Clearinghouse, is entitled “Securities Class Action Filings: 2025 Midyear Assessment,” can be found here. Cornerstone Research’s July 30, 2025, press release regarding the report can be found here.Continue Reading Cornerstone Research: Securities Suit Filings Steady in Year’s First Half

Sarah Abrams

In the following guest post, Sarah Abrams, Head of Claims Baleen Specialty, a division of Bowhead Specialty, takes a look at the D&O underwriting issues associated with Real Estate Investment Trusts (REITs), in the context of a pending securities class action lawsuit involving a cannabis-focused REIT. I would like to thank Sarah for allowing me to publish her article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this site’s readers. Please contact me directly if you would like to submit a guest post. Here is Sarah’s article.Continue Reading Guest Post: High on REITs

Rising geopolitical tensions are having an impact across a wide variety of issues, including, in particular, issues having to do with the cross-border movement of people. These issues include changes within respect to immigration and visa policies. These changes not only affect the individuals involved but also companies whose business operations are connected in some way to immigration and visa issues. A recently filed securities lawsuit against a company whose money transfer business is directly linked to the cross-border movement of students for education and study shows not only how changing visa policies, for example, can not only affect companies’ operations and financial results but can also translate into securities litigation.Continue Reading Geopolitical Developments, Visa Policies, and D&O Risk

As part of my day job, I attend a lot of insurance conferences, including some in foreign venues. A frequent feature of these conferences is expert conjecture about areas of emerging liability risk. In recent years, one frequently discussed area of concern has been emerging liability issues arising from the use of GLP-1 drugs. Many readers will be familiar with the branded GLP-1 products such as Ozempic, for treatment of type 2 diabetes, and Wegovy, for weight loss treatment. There already are, in fact, growing numbers of product liability claims concerning GLP-1 drugs, as discussed below.  

I have long wondered whether D&O claims relating to GLP-1 drugs might also emerge. In an interesting development last week, plaintiff shareholders filed two separate GLP-1-related securities class action lawsuits against telehealth platform Hims & Hers Health, when the company’s share price plunged after Novo Nordisk, the manufacturer of Wegovy, pulled its agreement allowing Hims to distribute the drug on its platform. Although the allegations in the new lawsuits against Hims are arguably specific to Hims, the lawsuits nevertheless are securities suits relating to GLP-1 drugs. As discussed further below, I continue to believe that issues relating to GLP-1 drugs are a potential area of emerging D&O risk.  Continue Reading Thinking About GLP-1 Drugs and D&O Risk

In the latest AI-washing related securities class action lawsuit to be filed, a plaintiff shareholder has filed a securities suit against AI-based health care company Tempus AI, alleging, among other things, that the company overstated its AI capabilities. The lawsuit comes after the company’s share price declined following the publication of a short seller report critical of the company and its management. A copy of the June 12, 2025, complaint against Tempus AI can be found here.Continue Reading AI-Washing Securities Suit Filed Against Tempus AI

Sarah Abrams

Last fall the U.S. Supreme Court dismissed, as improvidently granted, the writ of certiorari in two pending securities lawsuits, including in the Meta Platforms/Facebook case (as discussed here). The Court’s dismissal of the writ of certiorari in the Facebook case had obvious implications for the immediate litigants in the case, as it left the prior circuit court ruling standing. But the dismissal also has important implications for litigants in other cases involving the same issues as were raised in the Facebook case.

In the following guest post, Sarah Abrams, Head of Claims Baleen Specialty, a division of Bowhead Specialty, considers the implication for those other litigants in those other cases in light of the Supreme Court’s dismissal of the writ of certiorari in the Facebook case. I would like to thank Sarah for allowing me to publish her article as a guest post on this site. I welcome guest post submissions from responsible authors in topics of interest to this site’s readers. Please contact me directly if you would like to submit a guest post. Here is Sarah’s article.Continue Reading Guest Post: Location, Location, Location

As part of our beat here at The D&O Diary, we read all of the new securities class action lawsuit complaints as they come in. As a result, we have become quite accustomed to the reality that, as Bloomberg columnist Matt Levine famously put it, “everything, everywhere is securities fraud.” But our experience did not quite prepare us for the new complaint filed earlier this week against UnitedHealth Group that works the CEO’s murder into the complaint’s allegations. A copy of the May 7, 2025, complaint filed against UnitedHealth can be found here.Continue Reading Event-Driven Litigation, Sure, But Even Where the Event is the CEO’s Murder?

As I noted in a recent post (here), even though we are now more than five years past the initial COVID-19 outbreak in the U.S., companies continue to be hit with securities class action lawsuits alleging that the lingering effects of the pandemic’s disruption continue to affect their operations and financial results. The latest COVID-related securities lawsuit example provides an interesting variant on the typical allegations. The complaint in a new securities suit against pharma supply company West Pharmaceutical Services alleges not that the company failed to disclose the full impact of the pandemic on its operations and financial results, but rather that the company’s reports about the pandemic’s pervasive disruption masked other undisclosed customer losses.  A copy of the complaint against West can be found here.  Continue Reading Pharma Supply Company Hit with COVID-Related Securities Suit