According to the latest report from Cornerstone Research, the number of securities class action lawsuit filings declined slightly in 2022 relative to 2021, although the number of “core” securities suit filings increased slightly compared to 2021. The report, which is entitled “Securities Class Action Filings: 2022 Year in Review,” and which was published in conjunction with the Stanford Law School Securities Class Action Clearinghouse, notes that the number of new lawsuits involving Section 11 allegations rose 2022, likely due to the surge in IPOs during 2021. A copy of the report can be found here. Cornerstone Research’s February 1, 2023 press release about the report can be found here.

Continue Reading Cornerstone Research: Securities Suit Filings Declined in 2022

Jeff Lubitz

Jarett Sena

In the following guest post, Jeff Lubitz, Managing Director, ISS Securities Class Action Services, and Jarett Sena, Director of Litigation Analysis, ISS Securities Class Action Services, take a detailed look at the largest securities class action settlements of 2022, and in particular at the largest 10 U.S. securities class action settlements during the year as well as the largest non-U.S. settlements.  I would like to thank Jeff and Jarett 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: The Largest Securities Class Action Settlements of 2022

Federal court securities class action lawsuits filings slightly declined in 2022 compared to 2021, representing the third straight years of filing declines. The number of 2022 filings also fell below long-term annual filing averages; however, the number of core federal court securities class action filings in 2022 was only slightly below the number of 2021 core filings and the long-term historical annual average number of core filings.

Continue Reading 2022 Federal Court Securities Suit Filings Decline Slightly Relative to Recent Years

In a few days, when I work up my summary of the year’s events in the world of D&O, one of the stories I will be covering will be the volume of SPAC-related securities litigation during the year. The SPAC-related litigation represents a significant part of the year’s securities class action lawsuit filings. The latest example of this phenomenon is the lawsuit filed late last week against residential home improvement financing platform Sunlight Financial Holdings, Inc., which became a public company through a July 2021 merger with a SPAC. The new lawsuit is in many ways representative of the kinds of SPAC-related lawsuits filed this year. A copy of the complaint in the new lawsuit can be found here.
Continue Reading Construction Financing Platform Hit with SPAC-Related Securities Suit

At this point late in the year, it is looking increasingly likely that 2022 will be a down year in terms of the number of securities class action lawsuit filings relative both to recent years and even relative to long term historical norms. However, an important (and arguably somewhat surprising) part of the securities suits that were filed this year is the significant number of COVID-related securities suits filed this year. I say “surprising” because it seems unexpected well into the third year that plaintiffs’ lawyers would be continuing to file these suits. In the latest example of these kinds of suits, earlier this week a plaintiff shareholder filed a securities class action lawsuit against the pharmaceutical company Veru, Inc. related to the company’s disclosures concerning its efforts to develop a COVID-related therapy drug. A copy of the December 5, 2022 complaint filed against Veru can be found here.
Continue Reading Drug Development Company Hit With COVID-Related Securities Suit

As I have noted previously (most recently here), there have been a number of COVID-19-related securities class action lawsuits filed since the initial coronavirus outbreak in the U.S. in March 2020. But while these lawsuits have continued to be filed since the outset of the pandemic, as time has gone by, it has become increasingly challenging to say with certainty whether or not a new lawsuit is COVID-19-related. A case in point is the lawsuit filed this week against the online clothing rental and sales platform, Rent the Runway, Inc. (RTR). The lawsuit unquestionably raises allegations related to the challenges that the company faced (and faces) as a result of the pandemic; however, the plaintiff’s complaint raises a number of other allegations as well. For reasons discussed below, and even though the complaint raises a number of different kinds of allegations, I think that on balance the lawsuit counts as COVID-19-related. A copy of the complaint filed against RTR can be found here.
Continue Reading Online Clothing Company Hit With COVID-19-Related Securities Suit

One litigation trend that I have been following on this site since the initial coronavirus outbreak in the U.S. in March 2020 is the incidence of COVID-19-related securities class action litigation. Even though the outbreak is now well into its third year, these coronavirus-related cases continue to be filed. In the latest example of this phenomenon, on November 8, 2022, a plaintiff shareholder filed a securities class action lawsuit against Eiger Biopharmaceuticals in connection with the company’s efforts to develop a COVID-19 treatment. A copy of the plaintiff’s complaint in the case can be found here.
Continue Reading Biopharma Company Hit with COVID-Related Securities Suit

One of the more noteworthy developments in recent years has been the increasing frequency of collective investor actions outside the U.S. In certain instances, these cases have resulted in settlements that rival the largest U.S. securities class action lawsuit settlements in size. The largest of the settlements outside the U.S. are compiled in an October 31, 2022 report from ISS Securities Class Action Services entitled “The Top 25 Non-North American Settlements: Largest Securities-Related Settlements Outside of North America of All-Time.” The report, which updates ISS SCAS’s earlier research and was written by Jeff Lubitz, Managing Director, ISS Securities Class Action Services, and Jarett Sena, Director of Litigation Analysis, ISS Securities Class Action Services, can be found here.
Continue Reading The Top 25 Collective Investor Action Settlements Outside of North America

The SEC imposed fines on U.S. exchange-listed publicly traded companies at the highest levels in years during fiscal year 2022 (which ended September 30, 2022), according to an analysis published Saturday by the Wall Street Journal. As the Journal noted, the fines imposed during the fiscal year on firms accused of wrongdoing “underscore the Biden Administration’s tougher regulatory stance.” The October 29, 2022 Wall Street Journal article, entitled in the online edition “Under Biden Administration, Wall Street Watchdog’s Fines Surge,” can be found here.
Continue Reading Massive SEC Fines Surged During the Most Recent Fiscal Year

As I have previously noted, plaintiffs’ lawyers have over the last several months filed a plethora of securities class action lawsuit against companies that became publicly traded through a merger with a Special Purpose Acquisition Company (SPAC). Since these cases have only just been filed, few of the cases have yet reached the initial pleading hurdles. However, in a ruling last week, Central District of California Judge Christina A. Snyder denied in part the defendants’ motion to dismiss the securities suit pending against electric vehicle company Faraday Future Intelligent Electric, Inc., which became a public company through a June 2021 merger with a SPAC. As discussed below, the ruling may have significance for a number of the recently filed SPAC-related securities suits. A copy of Judge Snyder’s October 20, 2022 order can be found here.
Continue Reading Court Denies in Part Motion to Dismiss SPAC-Related Securities Suit Against EV Company