Tag Archives: litigation trends

Securities Suit Arising From Climate Change-Caused Conditions Hits Utility

Once again, wildfires are raging across the length of California, from San Francisco to Los Angeles. Once again, the electricity transmission facilities of PG&E are thought to have caused or contributed to at least some of the wildfires. And once again, in the wake of the wildfires, shareholders have launched a securities class action lawsuit … Continue Reading

Connecticut State Court Knocks Out Post-Cyan Securities Act Liability Action

In the wake of the U.S. Supreme Court’s March 2018 Cyan decision, in which the Court affirmed that state court’s retain concurrent jurisdiction for liability action under the ’33 Act, plaintiffs’ lawyers have initiated a number of Section 11 actions in the courts of a number of states. This new wave of state court Securities … Continue Reading

Zendesk Hit with Data Breach-Related Securities Suit

In the latest example of a securities class action lawsuit arising out of data breach or other cybersecurity incident, on October 24, 2019, a plaintiff shareholder filed a securities class action lawsuit against California-based software company Zendesk. The lawsuit follows after the company announced disappointing second quarter financial results in July and then announced in … Continue Reading

 Book Review: “Crisis of Conscience: Whistleblowing in the Age of Fraud”

Whistleblowing has a long and respected tradition in the United States. In more recent times, whistleblowing and its protections have been part of several legislative schemes, including, for example, the creation in the Dodd-Frank Act of the SEC Whistleblower Program. The recent whistleblower complaint about President Trump’s July 2019 phone call with Volodymyr Zelensky, the … Continue Reading

Environmental Liability-Related Securities Suit Filed against DuPont Spin-off Chemours

As I have previously noted on this blog, one recurring source of securities class action litigation exposure for publicly traded companies is the companies’ underlying environmental liabilities. In the latest example of this type of litigation, a plaintiff shareholder has now filed a securities suit against The Chemours Company, a chemical company that spun out … Continue Reading

Plaintiffs’ Lawyers, Merger Objection Litigation, and Mootness Fees

In a prior post, I noted recent academic research detailing the rise of mootness fee dismissals in federal court merger objection litigation. In these merger-related lawsuits, the plaintiffs agree to dismiss their suit based on the defendants’ agreement to make changes to the merger documents – thus, making the merger suit moot – and to … Continue Reading

Facebook Privacy-Related Securities Suit Dismissed Without Prejudice

Two of the most prominent examples of the rise of privacy-related securities class action lawsuits are the Cambridge Analytica scandal-related suit filed against Facebook in March 2018, and the Earnings Miss/GDPR-readiness and compliance-related securities suit filed against Facebook in July 2018. These two lawsuits were ultimately consolidated. In an interesting and detailed September 25, 2019 … Continue Reading

Percentage of Securities Suits Involving Opt-Outs Increased in Most Recent Years

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 … Continue Reading

Guest Post: Some Good News for the Cybersecurity Class Action Bar

As discussed in the following guest post from John Reed Stark, a recent development in the class action litigation arising out of the massive Marriott International data breach could have significant ramifications for other claimants asserting class action claims — including securities class action claims — based on data breaches or other cybersecurity incidents. Stark … Continue Reading

Percentage of 2018 Deals Drawing Merger Objection Suits Held Steady

One of the most significant corporate litigation phenomena over recent years has been the rise of merger objection litigation, as result of which nearly every public company merger objection transaction has drawn at least one lawsuit. According to the latest study of merger litigation from Cornerstone Research, this phenomenon continued in 2018, with the same … Continue Reading

Guest Post: Delaware Court Ruling Creates New Wrinkle for Defendants Evaluating Appraisal Claims

As I discussed in a recent post, in July 2019, a Delaware Superior Court judge held that an appraisal action is a Securities Claim within the meaning of the applicable D&O insurance policy. While this part of the court’s ruling was noteworthy, there was another part of the court’s ruling that was also important. In … Continue Reading

Bribery-Related Securities Suit Based on Acquired Company’s Pre-Merger Activities

As I have frequently noted on this site (most recently here), plaintiffs’ lawyers often attempt to fashion a securities lawsuit out of on revelations of corporate activities involving alleged violations of anti-bribery laws. A securities class action lawsuit filed this week represents the latest example of this phenomenon. In this instance, the allegedly improper conduct … Continue Reading

Environmental Liability-Related Securities Suit Filed Against 3M

At a time when litigation involving corporate disclosures regarding cybersecurity, privacy, and human resource practices and other hot topics dominate the discussion, potential corporate exposure arising from environmental liabilities and disclosures does not always receive the attention it deserves. However, as I have previously noted on this blog,  environmental disclosures can and frequently are the … Continue Reading

Federal Court Securities Suit Filings at Near Record Pace in Year’s First Half

Plaintiffs filed federal court securities class action lawsuits at  “near-record levels” during the first six months of 2019, according to a new report from Cornerstone Research. The July 31, 2019 report, entitled “Securities Class Action Filings: 2019 Midyear Assessment,” notes that the elevated filing levels continued in the year’s first half despite reduced numbers of … Continue Reading

A Closer Look at FCPA-Related Securities Suits

As I have previously noted, even though the Foreign Corrupt Practices Act (FCPA) does not contain a private right of action, plaintiffs’ attorneys have fashioned an FCPA-based claim of sorts in the form of a follow-on shareholder claim alleging either mismanagement or misrepresentation with respect to the alleged bribery or corrupt activity. A  July 10, … Continue Reading

Ontario-Based Firm is Latest Canadian Cannabis Company Hit with U.S. Securities Suit

One of the things that happened both in the lead up to and in the wake of the October 2018 legalization of cannabis-based products in Canada is that a number of Canada-based cannabis companies listed their shares on U.S. securities exchanges. From the outset, D&O insurers have regarded the cannabis companies as a distinct risk … Continue Reading

Securities Suit Filings Remain at Heightened Pace in Year’s First Half

During the first six months of 2019, federal court securities class action lawsuit filings remained well above historical levels and roughly on pace with the elevated filing levels in 2018. The number of federal court securities suit filings was significantly increased by the number of federal court merger objection lawsuit filings; however, even disregarding the … Continue Reading

Tribune Execs Must Contribute Personal Assets to $200 Million Settlement

Billionaire Sam Zell and other former executives of the bankrupt Tribune Company have reached a $200 million deal to settle the bankruptcy trustee’s adversarial claims against them arising out of the disastrous 2007 leveraged buyout (LBO) of the company. According to press reports about the settlement, the $200 million settlement amount will “significantly” exceed the … Continue Reading
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