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

In the latest SPAC-related securities class action lawsuit filing, a plaintiff shareholder has initiated a securities suit against Skillz, Inc., an online gaming platform that in December 2020 merged with Flying Eagle Acquisition Corp. (FEAC), a publicly traded special purpose acquisition company (SPAC). The share price of the post-merger publicly traded company declined after short sellers issued reports questioning the company’s revenue recognition practices and other financial details. The lawsuit followed after the share price decline. The individual defendants named in the securities complaint include the former President of FEAC, who became a director of Skillz following the merger. A copy of the plaintiff’s May 7, 2021 complaint can be found here.
Continue Reading Online Gaming Platform Hit with Post-SPAC Merger Securities Suit

In reporting in prior posts on SPAC-related litigation, I have primarily focused on federal court securities class action litigation (for example, here). In addition to the federal court litigation, there has also recently been state-court SPAC-related litigation filed, as I have also briefly noted (here, for example). In early April 2021, the Akin Gump law firm published a client alert memo noting that, at the time, over thirty SPACs has been sued in merger objection lawsuits filed in New York state court. In a May 5, 2021 post on her On the Case blog (here), Alison Frankel updated the Akin Gump filing data and reported that there have now been over 60 New York state court SPAC-related lawsuits filed. As Frankel’s article notes, the litigation itself is only part of the picture, as the plaintiffs’ lawyers involved have also been active in presenting SPACs with pre-lawsuit demand letters as well.
Continue Reading SPAC-Related State Court Merger Objection Litigation

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

In the latest edition of the law firm’s annual report, Sidley Austin takes a detailed look at important securities litigation developments in 2020 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, on motions to dismiss in the district courts and on appeal. The law firm’s report, entitled “Securities Class Actions in the Life Sciences Sector: 2020 Annual Survey” can be found here. The law firm’s two-page report summary can be found here.
Continue Reading A Detailed Look at 2020 Securities Litigation Against Life Sciences Companies

Joseph Burke
John Cheffers

One of the more noteworthy and interesting observations emerge the 2020 year end securities class action lawsuit filing review was the finding that, while the overall number of lawsuit filings declined in 2020 relative to 2019, the number of lawsuits filed against non-U.S. U.S.-listed companies actually increased during the year. In the following guest post, Joseph Burke and John Cheffers, take a closer look at the securities lawsuit filings against non-U.S. companies and suggest some possible causes for the amount of litigation. Joe is the Senior Economist and Data Scientist at Watchdog Research, Inc. and John is Director of Research and legal counsel for Watchdog Research. This summary article is also available on Watchdog Research’s website and the full report is available on request. I would like to thank Joe and John 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 Joe and John’s article.
Continue Reading Guest Post: Foreign Restatements and Securities Class Action Suits

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

The number of securities class action settlements increased only slightly in 2020 compared to 2019, but the aggregate total of all 2020 securities suit settlements doubled compared to the equivalent 2019 total, largely as a result of several “mega” settlements over $100 million, according to a March 17, 2021 report from Cornerstone Research. According to the report, which is entitled “Securities Class Action Settlements: 2020 Review and Analysis,” the average securities suit settlement in 2020 was larger than in 2019, but the median 2020 settlement decreased slightly compared to the 2019 median. Cornerstone Research’s March 17, 2021 press release can be found here and the report itself can be found here.
Continue Reading Cornerstone Research: Large Settlements Increased Total and Average 2020 Securities Suit Settlements

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

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