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As was the case for the last two reporting years, there were relatively few larger securities class action lawsuit settlements during 2019 compared to prior years. As reported in latest large securities class action lawsuit settlement report from ISS Securities Class Action Services (ISS), there were only two settlements finalized in 2019 large enough to make the list of all time large settlements. However, there are a number of pending tentative securities class action lawsuit settlements that are likely to be finalized in 2020, and thus are likely to lead to an increase in the number of Top 100 settlements during the year. The February 20, 2020 report, entitled “The Top 100 U.S. Class Action Settlements of All Time (as of December 31, 2019)” can be found here.
Continue Reading ISS Releases 2019 Top 100 Securities Class Action Lawsuit Settlements List

In business meetings during my recent European visit, one topic that came up is the widespread liability risks arising out of the opioid crisis. One particular question I was asked was whether, in addition to everything else, the opioid crisis presented D&O risks. I was quick to refer to the various U.S. securities class action claims that have arisen (about which refer here) and to assure my hosts that there were indeed many other opioid-related D&O claims as well. Among the other opioid-related D&O claims is the shareholder derivative action that was filed against the board of McKesson Corp. As it turns out, the McKesson derivative suit recently settled, for an agreement to pay $175 million. As discussed below, this settlement, which is subject to court approval, and which is one of the largest derivative settlements ever, is to be funded entirely by D&O insurance.
Continue Reading McKesson Opioid-Related Derivative Suit Settles for $175 Million

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

Securities class action lawsuit filings remained at elevated levels in 2019, but the mix of cases changed during the year, according to the recently published annual report from NERA Economic Consulting. According to the report, which is entitled “Recent Trends in Securities Class Action Litigation: 2019 Full-Year Review,” there were relatively fewer merger objection lawsuits during the year, and relatively more standard securities suits. NERA’s January 21, 2020 press release about the report can be found here, and the report itself can be found here. My own analysis of the 2019 securities litigation can be found here.
Continue Reading NERA Economic Consulting: Federal Securities Suit Filings Remain at Recent Elevated Levels

Securities class action litigation has been an important part of the corporate and securities litigation environment in the United States and Canada for many years. What has been interesting in more recent years has been the steady rise of collective investor actions outside North America. As these various claims have accumulated, a number of them have developed into significant settlements, as documented in a recent report. ISS Securities Class Action Services has published an interesting report entitled “The Top 25 Non-North American Settlements: Largest Securities-Related Settlements Outside of North America of All-Time” (here) detailing the largest collective investor action settlements in Europe, Australia, and Asia.
Continue Reading The Top 25 Securities-Related Settlements Outside of North America

On January 6, 2020, solar panel company First Solar announced that it had settled the securities class action lawsuit  pending against the company and certain of its executive officers for a payment of $350 million. During the long course of this matter, the case made its way to the Ninth Circuit a couple of times; the case even involved an unsuccessful petition to the U.S. Supreme Court for a writ of certiorari. In addition to its sheer size, there are a number of other interesting aspects to this settlement, as discussed below. The settlement is subject to court approval. The company’s January 6, 2020 press release can be found here.
Continue Reading First Solar Settles Long-Running Securities Class Action Lawsuit for $350 Million

The liability environment for directors and officers is always in a state of change, but 2019 was a particularly eventful year in the D&O liability arena, with important consequences for the D&O insurance marketplace. The past year’s many developments have significant implications for what may lie ahead in 2020 – and possibly for years to come, as well.  I have set out below the Top Ten D&O Stories of 2019, with a focus on the future implications.
Continue Reading The Top Ten D&O Stories of 2019

The number of federal court securities class action lawsuit filings during 2019 was consistent with the heightened number of filings in each of the two prior years. The total number of suits during 2019 was significantly increased by the number of federal court merger objection lawsuit filings, but even just with respect to the traditional suit filings, the number of securities suit filings in 2019 was well above historical levels. The 2019 federal court securities litigation rate (that is, the number of lawsuits relative to the number of listed companies) was at an all-time high.
Continue Reading Federal Court Securities Suit Filings Remain at Elevated Levels

On November 21, 2019, when a plaintiff shareholder filed a securities class action lawsuit against Aurora Cannabis, Inc. and certain of its directors and officers, the company became the latest U.S.-listed Canadian cannabis company to be hit with a U.S. securities class action lawsuit. The lawsuit against Aurora came just one day after a different claimant launched a separate U.S. securities lawsuit against another Canadian-based and U.S.-listed cannabis company, Canopy Growth. These two companies join a growing list of cannabis-related firms that have been hit with securities suits this year. As discussed below, these cannabis-related company lawsuits are one of several factors contributed to the continued elevated level of securities class action lawsuit filings in the U.S.
Continue Reading A Rash of Cannabis-Related Securities Class Action Lawsuits

Opt-outs “remain a small yet significant part of the overall securities class action landscape,” according to a recently updated Cornerstone Research report written in conjunction with the Latham & Watkins law firm. The report, entitled “Opt-Out Cases in Securities Class Action Settlements” (here) notes that the opt-out rate has more than doubled in the most-recent four year period and that opt-outs remain more likely in larger dollar settlements. Cornerstone Research’s September 25, 2019 press release about the report can be found here.
Continue Reading Percentage of Securities Suits Involving Opt-Outs Increased in Most Recent Years