In numerous recent posts, I have noted the global rise of investor collective actions (refer for example here). These lawsuits, which take a variety of different forms according to the applicable forum laws, have been filed in a number of different countries. Among other regions that have seen a recent rise in this type of litigation is Europe. In an interesting November 16, 2016 publication entitled “Rise of European Shareholder Class Action? (here), AIG Europe takes a look at the recent rise of collective investor actions, noting among other things that these types of actions are “on the rise in Europe” as a result of “a number of converging factors.” Continue Reading The Rise of Collective Shareholder Actions in Europe
Guest Post: Recent Trends in Interpreting Cyber and Commercial Crime Insurance
In the following guest post, David Bergenfeld, a Senior Associate in D’Amato & Lynch’s Fidelity Bond Practice Group, takes a look at the key judicial decisions during the third quarter of 2016 interpreting cyber and commercial crime insurance policies. I would like to thank David for allowing me to publish his article. 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 guest post. Continue Reading Guest Post: Recent Trends in Interpreting Cyber and Commercial Crime Insurance
Privately-Held Brazilian Mining Company Hit with U.S. Securities Class Action
On November 14, 2016, in an interesting lawsuit that brings together a number of recent securities litigation trends, a noteholder of Samarco Mineração, S.A. filed a purported securities class action lawsuit in the Southern District of New York against the company and its CEO on behalf of investors who purchased the company’s debt securities. Samarco, a joint venture of mining giants Vale, S.A., and BHP Billiton, owned and operated the Fundão tailings dam that collapsed on November 5, 2015, in what has been called Brazil’s worst-ever environmental disaster. There are a number of interesting features to this new lawsuit, beyond just its relationship to the dam collapse disaster. A copy of the plaintiff’s November 14, 2016 complaint can be found here. Continue Reading Privately-Held Brazilian Mining Company Hit with U.S. Securities Class Action
SEC Enforcement Activity Involving Public Companies
While the confirmation earlier this week that Mary Jo White will step down as SEC Chair at the end of the Obama administration raises interesting questions about the SEC’s possible future direction and priorities, the agency’s public company-related enforcement activities during the last fiscal year provide some very interesting insights about the SEC’s recent priorities. In an interesting November 15, 2016 report entitled “SEC Enforcement Activity Against Public Companies and Their Subsidiaries: Fiscal Year 2016” (here), the NYU Pollack Center for Law & Business and Cornerstone Research take a detailed look the SEC’s enforcement activity during the fiscal year ending on September 30, 2016. The report examines the agency’s record levels of enforcement activity involving public company defendants during the fiscal year. Continue Reading SEC Enforcement Activity Involving Public Companies
As Litigation Funding Rises Globally, Important Local Differences Affect its Impact
As I have previously noted on this site, the rise of third-party litigation funding is one of the most significant and potentially consequential development in the global litigation arena. But because of differences in countries’ legal systems, the escalation of litigation funding means and will mean different things in different jurisdictions. In an interesting November 10, 2016 Law 360 article entitled “U.S. vs. The Rest: Litigation Funding’s Local Characteristics” (here, subscription required), Noah Wortman of the Goal Group of Companies and Jeremy Marshall of Bentham Europe Ltd. suggest that the rise of litigation funding has had and will continue to have important consequences in the litigation arena, but those consequences differ and will differ due to important differences in the litigation environment in the various countries. The authors’ comments include some interesting insights into litigation funders’ investment goals. Continue Reading As Litigation Funding Rises Globally, Important Local Differences Affect its Impact
O.K., America, He Won the Election – Now What?
Many Americans were surprised by the outcome of the recent U.S. Presidential election. As unexpected as the results may have been, the fact is that on January 20, 2017, Donald Trump will be sworn in as the 45th President of the United States. Even among his supporters, there is a great deal of uncertainty about what a Trump presidency will actually mean. Many of the larger questions – foreign and diplomatic affairs, trade plans, military security, economic policy — are more appropriately addressed elsewhere. In this blog post, I lay out some of my thoughts about what Mr. Trump’s election may mean for the business litigation environment. Continue Reading O.K., America, He Won the Election – Now What?
Guest Post: IPO Lock-Up Agreement Parties Not a “Group” Liable for Short-Swing Profits
In the following guest post, attorneys from the Paul Weiss law firm review and analyze a November 3, 2016 Second Circuit decision (here) in which the appellate court held that the standard pre-IPO lock-up agreements between a company’s pre-IPO shareholders and the company’s lead IPO underwriters do not make those parties a “group” within Section 13(d) of the ’34 Act, and therefore that the lock-up agreement alone is insufficient to trigger Section 16(b) short-swing profit liability. I would like to thank the Paul Weiss attorneys for their willingness to allow me to publish their article 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 the Paul Weiss attorneys’ guest post. Continue Reading Guest Post: IPO Lock-Up Agreement Parties Not a “Group” Liable for Short-Swing Profits
Investors File Climate Change Related Securities Suit Against Exxon Mobil
For many years, I have been raising the possibility of climate change-related corporate and securities litigation. However, despite my best prognostication, the climate change-related corporate and securities lawsuits have basically failed to materialize – that is, until now. On November 7, 2016, investors filed a purported securities class action lawsuit in the Northern District of Texas against Exxon Mobil Corporation and certain of its directors and officers. The lawsuit specifically references the company’s climate change-related disclosures, as well as the company’s valuation of its existing oil and gas reserves. One lawsuit doesn’t make a trend, and many of the lawsuit’s allegations relates specifically to Exxon Mobil and its particular disclosures. Nevertheless, the filing of the lawsuit raises the question whether there may be other climate change-related disclosure cases ahead. A copy of the November 7, 2016 lawsuit can be found here. Continue Reading Investors File Climate Change Related Securities Suit Against Exxon Mobil
Generic Drug Companies Hit With Antitrust Enforcement Follow-On Securities Suits
In a recent post, I noted that plaintiffs’ lawyers had recently launched a series of securities class action lawsuits against several poultry producers in the wake of news that companies in that industry were the target of antitrust enforcement action. Now news has emerged that antitrust regulators may be targeting companies in a different sector, the generic drug manufacturing industry. Within days of the news, plaintiffs’ lawyers have filed several securities class action lawsuits against several generic drug companies — the latest companies to be hit with follow-on securities suits following news of antitrust enforcement actions. Continue Reading Generic Drug Companies Hit With Antitrust Enforcement Follow-On Securities Suits
Guest Post: Hidden Lessons from Anthony Weiner’s Laptop (Computer)
A great deal of media attention has been paid to the contents of Anthony Weiner’s laptop computer, including the existence of emails between or among Hillary Clinton and Huma Abedin. However, questions about the legality of investigative actions taken with respect to the computer have largely been overlooked. In the following guest post, John Reed Stark, President of John Reed Stark Consulting and former Chief of the SEC’s Office of Internet Enforcement, examines these issues as part of a comprehensive review the legal issues pertaining to electronic evidence gathered and sought during criminal and civil investigations. A version of this article originally appeared on CybersecurityDocket. I would like to thank John for his willingness to publish his article as a guest post on my 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 John’s guest post. Continue Reading Guest Post: Hidden Lessons from Anthony Weiner’s Laptop (Computer)