Securities Litigation

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Sarah Abrams

In the following guest post, Sarah Abrams considers the potential D&O liability and insurance implications of a class action lawsuit Meta’s social media platform users recently brought against the company alleging that advertisements on the company’s sites enabled a stock manipulation scheme. Sarah is Head of Claims Baleen Specialty, a division of Bowhead Specialty. 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: When Fraud Leads to Fraud

In a recent study about securities class action lawsuit filings in the first six months of 2025, NERA reports that first half filings represented a tale of two quarters, with the first quarter filings representing the highest quarterly number in five years, and the second quarter filings represented the lowest quarterly filing number in five years. The report, which is entitled “Recent Trends in Securities Class Action Litigation: H1 2025 Update,” and which can be found here, includes a number of other interesting observations, as discussed below.

Continue Reading NERA Reports on 1H25 Federal Court Securities Class Action Lawsuit Filings

Regular readers may recall my recent post in which I discussed the possibility of an emerging trend of D&O claims related to GLP-1 drugs. GLP-1 drugs are sold under manufacturers’ brand names as weight loss and obesity treatments – such as, for example Ozempic for treatment of diabetes, and Wegovy for weight loss treatment. In my prior post, I discussed a recent example of a GLP-1-related D&O claim, a securities class action lawsuit against the telehealth platform Hims & Hers Health.

In a new lawsuit that represents yet another example of a GLP-1-related D&O claim, a plaintiff shareholder has launched a securities suit against the Danish drug company, Novo Nordisk, based on the company’s alleged misrepresentations concerning its ability to capitalize on the overall GLP-1 market. As also discussed further below, in the course of my research for this post, I also uncovered yet another GLP-1 D&O claims as well.

Continue Reading More About GLP-1 Drugs and D&O Risk

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