Nessim Mezrahi
Stephen Sigrist

In the following guest post, Nessim Mezrahi and Stephen Sigrist discuss their analysis of Rule 10b-5 private securities fraud litigation in 2019 and 2020 against U.S. Issuers, and the impact of recent guidance by the 2nd and 7th Circuits on Halliburton II stock price impact defenses at the class certification stage.  Mezrahi is cofounder and CEO and Sigrist is a data scientist at SAR.  SAR’s January 8, 2021 press release discussing a more detailed 4Q 2020 securities class action analysis can be found here. A version of this article previously was published on Law360. I would like to thank Nessim and Stephen 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 the authors’ article. Continue Reading Guest Post: Halliburton II Price Impact Defenses Can Limit Severity on Deficient Exchange Act Claims

Paul A. Ferrillo

As I noted in a prior post, the recent state-sponsored cyber incident carried out through an attack on SolarWinds has a number of important implications. As noted in the following guest post from Paul Ferrillo, the incident could also have important implications for the cyber insurance marketplace. Paul is a partner in the McDermott, Will & Emery law firm. I would like to thank Paul 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 Paul’s article. Continue Reading Guest Post: SolarWinds – Einstein Failed Us, and the Cyber Insurance Markets will Feel the Squeeze

In my recent roundup of top D&O stories, I identified privacy as among the top issues for concern in the corporate liability environment. In identifying privacy as a top concern, one specific thing I had in mind was the threat of class action litigation under the Illinois Biometric Privacy Act (BIPA). As if to underscore the significance of corporate exposure from privacy issues, on January 6, 2021, a bipartisan group of New York legislators introduced biometric privacy legislation that, notably, would include remedies along the lines of the Illinois statute. Although there may be reasons to question whether the proposed New York legislation will be enacted, even just its proposal is a concern and underscores the growing importance of privacy issues generally. Continue Reading New York Legislators Introduce Proposed Biometric Privacy Act with Private Right of Action

David H. Topol

In the following guest post, David H. Topol of the Wiley law firm reviews the important legal and regulatory developments affecting private investment funds during 2020. I would like to thank David for allowing me to publish his 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 David’s article. Continue Reading Guest Post: Private Investment Funds: Major Developments from 2020

In the following guest post, Francis Kean provides us with ten reasons to be cheerful notwithstanding the current D&O insurance market. Francis is a Partner, Financial Lines, at McGill and Partners. A version of this article previously was published Insurance Day. I would like to thank Francis for allowing me to publish his 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 Francis’s article. Continue Reading Guest Post: The State of the D&O Market: 10 Reasons to Be Cheerful

In prior posts on this site, I have identified privacy-related issues as a potentially important source of future D&O claims. In making these projections, one thing I had in mind was the possibility of claims as a result of the enforcement of the EU’s General Data Protection Regulation, which went into effect in May 2018. There have in fact already been GDPR-related securities class action lawsuits filed in the U.S., including the securities suit filed in August 2018 against U.K.-incorporated media tracking company Nielsen Holdings. In a January 4, 2021 opinion, Southern District of New York Judge Jesse Freeman granted in part and denied in part the defendants’ motion to dismiss the Nielsen Holdings lawsuit. Of significance to the questions concerning privacy-related claims, the plaintiff’s allegations concerning defendants’ statements after GDPR went into effect about the GDPR’s impact on the company survived the dismissal motion. A copy of Judge Furman’s opinion can be found here. Continue Reading GDPR-Related Securities Suit Against Nielsen Holdings in Part Survives Dismissal Motion

In my recent survey of key 2020 D&O developments I highlighted the surge of SPAC IPOs last year and conjectured about the possible increase in the number of D&O claims that might arise following the transactions in which private companies merge into the public traded SPACs ( the so-called de-SPAC transaction). A securities suit filing this week demonstrates how these claims might well arise and does suggest we could indeed be in for an influx of securities suits and other D&O claims filed following de-SPAC transactions. Continue Reading Post-SPAC Merger Company Hit with Post-Transaction Securities Suit  

In my round-up of the Top D&O Stories of 2020, which I published earlier this week, I noted that the recent massive state-actor hack of U.S. government agencies and technology companies underscored the fact that cybersecurity represents a significant operational and management risk for organization of every type. I also noted that cybersecurity-related issues represent an ongoing D&O claims risk. As if to confirm these propositions, the first securities class action lawsuit of the New Year was filed against Solar Winds, the network infrastructure management company whose breached software is believe to have contributed to the recent massive hack. As discussed below, the newly filed complaint highlights the fact that cybersecurity represents a significant potential source of management liability risk. Continue Reading SolarWinds Hit with Securities Suit Based on Third-Party Governmental Actor Cyber Attack

The directors’ and officers’ liability environment is always changing, but 2020 was a particularly eventful year, with important consequences for the D&O insurance marketplace. The past year’s many developments also have significant implications for what may lie ahead in 2021 – and possibly for years to come.  I have set out below the Top Ten D&O Stories of 2020, with a focus on the future implications. Please note that on Wednesday, January 13, 2021 at 11:00 AM EST, my colleague Marissa Streckfus and I will be conducting a free, hour-long webinar in which we will discuss The Top Ten D&O Stories of 2020. Registration for the webinar can be found here. I hope you will please join us for the webinar. Continue Reading The Top Ten D&O Stories of 2020

The number of federal court securities class action lawsuit filings declined in 2020 relative to the most recent prior years, largely due to short-term filing lulls during the second and fourth quarters of the year. Though the number of filings last year was below the record-setting levels seen during the years 2017 to 2019, the number of 2020 filings was still well above historical annual averages. Continue Reading Securities Suit Filings Declined in 2020 But Remained Above Historical Levels