In the latest edition of its annual report, the Sidley Austin law firm takes a detailed look at important securities litigation developments in 2022 relating to life sciences companies. The report includes not only a review of life sciences companies’ securities litigation class action filings trends but also examines life sciences companies’ track record in the courts, both with respect to motions to dismiss in the district courts and on appeal. The law firm’s report, entitled “Securities Class Actions in the Life Sciences Sector: 2022 Annual Survey” can be found here. A May 17, 2023 blog post summarizing the report can be found here.Continue Reading A Detailed Look at the 2022 Securities Litigation Against Life Sciences Companies
The number of securities class action lawsuit filings involving accounting allegations increased slightly in 2022 compared to 2021, but the number of 2022 accounting-related securities suit filings remained below the long-term annual average of such filings, according to the latest annual report from Cornerstone Research. At the same time, the total number, aggregate total value, and median and average values of accounting-related securities suit settlements increased in 2022 compared to the 2021. The Cornerstone Research report, which is entitled “Accounting Class Action Filings and Settlements: 2022 Review and Analysis,” can be found here. Cornerstone Research’s April 12, 2023, press release about the report can be found here.Continue Reading Cornerstone Research: Accounting Related Case Filings and Settlements Increased in 2022
In my recent wrap-up of the top D&O stories of 2022, I noted that one of last year’s key topics was the quantity of litigation involving special purpose acquisition companies (SPACs). It now appears that this trend is continuing into the new year. Late last week, a plaintiff shareholder filed a SPAC-related securities suit against battery development company Enovix, alleging that the company had misrepresented its manufacturing capabilities. A copy of the January 6, 2023, complaint against the company can be found here.Continue Reading Battery Co. Hit with SPAC-Related Securities Suit
There were fewer than 300 total securities class action lawsuit filings in 2021 for the first time since 2016, according to the latest report from NERA Economic Consulting. While the report, entitled “Recent Trends in Securities Class Action Litigation: 2021 Full-Year Review,” notes that securities suit filings declined in 2021 compared to recent years, largely due to a decline in merger objection lawsuit filings, the number of 2021 securities suit filings is “well within pre-2017 historical range.” Aggregate, average, and media settlements also declined in 2021 relative to prior years, according to the report. The report can be found here. NERA’s January 25, 2022 press release about the report can be found here. My own report on the 2021 securities suit filings can be found here.
Continue Reading NERA Economic Consulting Report Shows Decreased Securities Suit Filings in 2021
Even though the overall number of federal court securities class action lawsuit filings decrease in 2020 relative to 2019, the number of securities suits involving accounting allegations increased slightly, according to a new report from Cornerstone Research. The report, which is entitled “Accounting Class Action Filings and Settlements: 2020 Review and Analysis” also notes that the number of and value of settlements of accounting-related securities suits increased in 2020, as well. The April 7, 2021 report can be found here. Cornerstone Research’s April 7, 2021 press release about the report can be found here.
Continue Reading Accounting-Related Securities Suit Filings and Settlements Increased in 2020
One of the interesting things about the 2020 securities class action lawsuit filing numbers is that even though the overall number of securities suit filings went down in 2020, the number of securities class action lawsuits filed against non-U.S. companies actually increased during the year. The 2020 securities suit filings against non-U.S. companies are reviewed in detail in a new report from the Dechert law firm entitled “2020 Developments in U.S. Securities Fraud Class Actions Against Non-U.S. Issuers.” The March 8, 2021 report can be found here.
Continue Reading U.S. Securities Suit Filings Against Non-U.S. Companies Increased in 2020
Since the coronavirus outbreak emerged earlier this year, I have been tracking the COVID-19-related securities class action lawsuits and writing about each of the cases as they have come in. In an October 28, 2020 memo entitled “COVID-19: Lessons from the Second Wave of Securities Fraud Lawsuits” (here), the WilmerHale law firm takes a deeper look at the coronavirus-related securities litigation, with particular focus on the securities suits filed in the May to September 2020 time frame. Along the way, the memo identifies a number of securities lawsuits filed during that period as coronavirus-related that I had not included in my COVID-19 litigation tally. As discussed below, the memo makes several interesting points about the coronavirus-related securities suits. I also discuss below whether or not I agree that the additional cases that the law firm identified in the memo belong on the list of coronavirus-related cases.
Continue Reading Tallying and Analyzing COVID-19-Related Securities Suits
Largely due to a significant decline in the number of filings during May and June, the number of federal court securities class action lawsuit filings in the first half of 2020 was well below the number of filings at the same point last year – although still well above long-term historical levels. The number of first half filings was significantly boosted by a cluster of securities suit filings against cryptocurrency companies that were sued on a single day in April, as well as by the number of coronavirus outbreak-related securities suits.
Continue Reading Securities Suit Filings Decline in Year’s First Half
As I noted in my recent analysis of the 2019 securities class action litigation filings, one of the significant factors driving the near-historical levels of securities suit filings during the year was the elevated levels of securities litigation against life sciences companies. A January 21, 2020 report from the Dechert law firm, entitled “Dechert Survey: Developments in Securities Fraud Class Actions Against U.S. Life Sciences Companies: 2019 Edition” (here), details the 2019 securities lawsuit filings against life sciences companies, and reports that once again life sciences companies were “popular targets” for securities litigation claims.
Continue Reading A Closer Look at 2019 Securities Litigation against Life Sciences Companies
As I have previously noted, 2018 was another extraordinary year for U.S. securities class action litigation, as filings overall remained at near-historical rates. One of the significant contribution factors to this development was the substantial number of securities suits filed against life sciences companies. The number and significance of the securities suits filed against life sciences companies is detailed in a February 6, 2019 report from the Dechert law firm entitled “Dechert Survey: Developments in U.S. Securities Fraud Class Actions Against Life Sciences Companies: 2018 Edition” (here).
Continue Reading A Detailed Look at 2018 Securities Litigation Against Life Sciences Companies