As readers of this blog know, from the very early days of the coronavirus outbreak COVID-19 related D&O lawsuits have been filed. Just as there have been new variants of the virus itself over the course of the pandemic, there have also been variants of the D&O lawsuits. The most recent variant of the COVID-19-related D&O lawsuit is the Delaware Chancery Court complaint filed earlier this month, in which the plaintiff in the derivative action alleges that corporate insiders profited by taking advantage of a drop in the company’s share price to grant themselves lucrative stock options. A copy of a redacted version of the shareholder plaintiff’s July 9, 2021 complaint can be found here. A copy of a July 21, 2021 Proskauer law firm blog post about the lawsuit can be found here.
Continue Reading A New COVID-19-Related D&O Lawsuit Variant

Even though the worst of the pandemic crisis in the U.S. appears, at least for now, to be past, the threat of COVID-19-related claims continues. In the latest example of the continuing COVID-19-related claim threat, the SEC has initiated a COVID-19-related enforcement action against a California-based digital health care company that had made claims early in the coronavirus outbreak about the company’s ability to profit from the outbreak. The SEC’s new action is a reminder that the threat of new COVID-19-related claims is ongoing. A copy of the SEC’s July 7, 2021 complaint against Parallax Health Sciences, Inc. can be found here. The SEC’s July 7, 2021 press release about the enforcement action can be found here.
Continue Reading SEC Files COVID-19-Related Enforcement Action Against Digital Health Firm

We are now well into the second year of the COVID-19 pandemic, yet at this late date the COVID-19-related securities class action lawsuits continue to come in. In the latest example, Ocugen, a U.S.-based gene therapy development company that hoped to develop a COVID-19 vaccine, was hit with a securities class action law after a setback in its regulatory approval efforts. A copy of the plaintiff’s June 17, 2021 complaint against Ocugen can be found here.
Continue Reading Biopharma Company Hit with COVID-19-Related Securities Suit

Among the industries hit hardest at the outset of the coronavirus outbreak last year was the cruise ship business. As these companies were forced to cease operations, revenues plunged. Several of the companies were hit with securities class action lawsuits as well, though, as discussed below, these lawsuits have not fared well. On May 28, 2021, in the latest ruling in a COVID-19-related securities suit against a cruise ship line, the federal judge in the securities suit pending against Carnival Corp. granted the defendants motion to dismiss. The court’s ruling evinces a great deal of skepticism of the plaintiffs’ case.
Continue Reading Another COVID-19-Securities Suit Against Cruise Line Dismissed

Jeff Lubitz
Louis Angelo Panis

As readers of this blog are aware, since the outbreak of the pandemic early last year, there has been a flow of COVID-19-related securities class action lawsuits filed in U.S. courts. I have tried to track these cases as they have been filed and to note them on this site. ISS Securities Class Action Services has also been tracking these cases. In the following guest post, Jeff Lubitz and Louis Angelo Panis analyze the COVID-19 securities suits. Jeff is the Executive Director and Louis is an analyst at ISS Securities Class Action Services. The ISS SCAS data is slightly more inclusive than the data I have compiled and reported on this site, as the ISS SCAS data includes state court securities class action lawsuits as well as federal court securities class action lawsuits, whereas my data set is limited to federal court actions only. Please note that several graphic displays of the ISS SCAS litigation data follow the article. A version of this article previously was published as an ISS Insights article. I would like to thank Jeff and Louis for allowing 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 Jeff and Louis’s article.
Continue Reading Guest Post: COVID-19 Update: Investor Related Class Actions

After more than a year of lockdowns, social distancing, and sheer disruptions of life, we are all more than ready to be done with the coronavirus outbreak and to move on. Unfortunately, the virus is not done with us yet. In places like Brazil and India, COVID-19 continues to exact a grim toll. Just as I, like all of the rest of you, had assumed in the early stages of the outbreak that we would be done with the coronavirus by now, I also thought we would be done with coronavirus-related litigation by now as well. However like COVID-19 itself, coronavirus-related litigation continues on despite our expectations. As discussed below, in the past week, two more coronavirus-related securities class action lawsuits were filed, as the pandemic-related litigation phenomenon continues.
Continue Reading COVID-19 Securities Suits Continue to Accumulate

Electric vehicle battery company Romeo Power, which became a publicly traded company through a December 2020 merger with a SPAC, has been hit with a securities class action lawsuit following a share price decline after its announcement of a disruption in its supply chain. The new lawsuit is interesting both because of the SPAC angle and because it resulted from supply chain issues. The new lawsuit against Romeo Power was, in fact, one of two securities suits filed last week arising out of supply chain disruption. As discussed below, supply chain disruption could represent an emerging new area of corporate and securities litigation exposure. I also discuss below the fact that the new lawsuit involves yet another de-SPAC company in the electric vehicle industry
Continue Reading Tracking Two Emerging Securities Litigation Trends: SPACs and Supply Chain Disruption

One of the very first coronavirus-related securities class action lawsuits to be filed at the outset of the pandemic in the U.S was the securities suit filed against Norwegian Cruise Line Holdings. The Norwegian Cruise Line lawsuit is now the latest of the coronavirus-related securities suits to be dismissed. In an April 10, 2021 opinion with a number of interesting features discussed below, Southern District of Florida Judge Robert N. Scola, Jr. granted the company’s motion to dismiss with prejudice. A copy of Judge Scola’s opinion can be found here.
Continue Reading COVID-19-Related Securities Suit Against Norwegian Cruise Lines Dismissed

In the latest sign that coronavirus-related securities lawsuits are continuing to be filed, a plaintiff shareholder has filed a securities suit against a biotechnology company and two if its executives, alleging that the company drove up its share price by promoting its HIV-focused drug candidate as a treatment for COVID-19. Although the new complaint is similar in many respects to prior COVID-19-related securities lawsuits, it has several distinct features as well. A copy of the plaintiff’s complaint can be found here.
Continue Reading Biotech Company Hit with COVID-19-Related Securities Suit

It was over a year ago – March 11, 2020, to be exact – that the World Health Organization declared the COVID-19 outbreak to be a pandemic. And it was also over a year ago – March 12, 2020, in fact – that the first of the coronavirus outbreak-related securities class action lawsuits were filed. Since that time, more than two dozen other coronavirus-related securities suits have also been filed. But while the pandemic related litigation has been an interesting phenomenon, a year into the development there are some interesting questions about the litigation. Such as, for example, why hasn’t there been more securities litigation related to the pandemic? In this post, I take a look at the litigation (so far) and try to answer a few of the questions.
Continue Reading A Year of COVID-19-Related Securities Lawsuits