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The directors’ and officers’ liability environment is always changing, but 2024 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 2025 – and possibly for years to come.  I have set out below the Top Ten D&O Stories of 2024, with a focus on future implications. Please note that on Wednesday, January 15, 2025 at 11:00 AM EST, my colleagues Marissa Streckfus, Chris Bertola, and I will be conducting a free, hour-long webinar in which we will discuss The Top Ten D&O Stories of 2024. Registration for the webinar can be found here. I hope you can join us for the webinar.Continue Reading The Top Ten D&O Stories of 2024

The number of federal court securities class action lawsuit filings increased in 2024 for the second year in a row, to the highest level since 2020. The increased number of federal court securities suit filings during the past year is due to several factors, including continuing filings relating to ongoing trends such as new lawsuit filings relating to SPACs, COVID-related suits, and cryptocurrencies, as discussed further below.Continue Reading Federal Court Securities Class Action Lawsuit Filings Increased in 2024

Among the most distinctive and important securities class action lawsuit filing trends this year has been the influx of new lawsuit based on alleged AI-related misrepresentations. In the latest example, on October 15, 2024, a plaintiff shareholder filed a securities class action lawsuit against China-based AI and robotics company, Xiao-I, in which the shareholder alleged financial reporting issues and also that the company overstated its AI capabilities. A copy of the October complaint against the company can be found here.Continue Reading China-Based Company Hit with AI-Related Securities Suit

The number of securities class action lawsuits filed in the first six months of 2024 increased relative to the number of securities suits filed in the second half of 2023, according to a new report from Cornerstone Research. The number of suits filed in the first half of 2024 is roughly level with the historical semiannual average number of filings. The July 31, 2024, report, which is entitled “Securities Class Action Filings:2024 Midyear Assessment,” can be found here. Cornerstone Research’s July 31, 2024, press release regarding the report can be found here.Continue Reading Cornerstone Research: 1H24 Securities Suit Filings Increased Compared to 2H23

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