Since the outset of President Trump’s efforts to conduct trade policy through an active use of tariffs, I have been concerned about the possibility of tariff-related corporate and securities litigation. Inevitably, I have been concerned, investors will say that companies tried to soft-pedal the likely impact of tariffs on the companies’ financial results. But while
In the following guest post, Ed Whitworth, the Head of Financial Lines at Inigo, and Yera Patel, Head of Casualty & Financial Lines Claims and Analytics for Inigo, summarize the results of a recent survey Inigo conducted of U.S. securities litigation defense counsel. The original of the survey summary previously was published on Inigo’s blog, here. I would like to thank Ed, Yera, and Inigo for allowing me to publish the report summary on this site. I welcome guest post submissions from responsible authors on topics of interest to the 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: Inigo’s 2025 Defense Counsel Survey
Regular readers undoubtedly have noticed that I have been writing a lot lately about the False Claims Act (FCA). That is because the Trump Administration has decided to deploy the FCA as one of its principal legal tools to enforce and advance its policy objectives. Insurers wondering what the administration’s enforcement approach may mean for their claims portfolios may want to take a look at the securities class action lawsuit recently filed against online insurance broker SelectQuote. The company, whom the DOJ sued in May in a False Claims Act suit alleging the company received “illegal kickbacks” from insurers, has now been hit with a follow-on securities suit relating to the FCA allegations. As discussed below, the new follow-on lawsuit suggests that D&O insurers will want to consider the implications of the administration’s active deployment of the FCA as an enforcement tool. A copy of the August 11, 2025, lawsuit against SelectQuote can be found here.Continue Reading False Claims Act Defendant Hit with Follow-On Securities Suit
In a recent study about securities class action lawsuit filings in the first six months of 2025, NERA reports that first half filings represented a tale of two quarters, with the first quarter filings representing the highest quarterly number in five years, and the second quarter filings represented the lowest quarterly filing number in five years. The report, which is entitled “Recent Trends in Securities Class Action Litigation: H1 2025 Update,” and which can be found here, includes a number of other interesting observations, as discussed below.Continue Reading NERA Reports on 1H25 Federal Court Securities Class Action Lawsuit Filings
Regular readers may recall my recent post in which I discussed the possibility of an emerging trend of D&O claims related to GLP-1 drugs. GLP-1 drugs are sold under manufacturers’ brand names as weight loss and obesity treatments – such as, for example Ozempic for treatment of diabetes, and Wegovy for weight loss treatment. In my prior post, I discussed a recent example of a GLP-1-related D&O claim, a securities class action lawsuit against the telehealth platform Hims & Hers Health.
In a new lawsuit that represents yet another example of a GLP-1-related D&O claim, a plaintiff shareholder has launched a securities suit against the Danish drug company, Novo Nordisk, based on the company’s alleged misrepresentations concerning its ability to capitalize on the overall GLP-1 market. As also discussed further below, in the course of my research for this post, I also uncovered yet another GLP-1 D&O claims as well.Continue Reading More About GLP-1 Drugs and D&O Risk
Recent securities class action lawsuit filing analyses have noted (as discussed, for example here), that the number of COVID-related securities suit filings has declined so far this year relative to last year. Arguably the more interesting observation is that these lawsuits are being filed at all in 2025, now well over five years since the initial outbreak of COVID-19 in the United States. In the latest example of the continued filing of these kinds of suits, late last week, a plaintiff shareholder filed a securities class action lawsuit against Lineage, a cold storage focused real estate investment trust (REIT). The complaint alleges that in the run-up to the company’s July 2024 IPO, the company soft-pedaled the impact of the downturn of pandemic-driven demand. The new complaint against Lineage can be found here.Continue Reading REIT Hit With COVID-Related Securities Suit
The number of securities class action lawsuits filed in the first six months of 2025 was roughly level with the number of securities suits filed in the second half of 2024, according to a new report from Cornerstone Research. The number of suits filed in the first half of 2025 is also roughly level with the historical semiannual average number of filings. The July 30, 2025, report, which Cornerstone Research produced in conjunction with the Stanford Law School Securities Class Action Clearinghouse, is entitled “Securities Class Action Filings: 2025 Midyear Assessment,” can be found here. Cornerstone Research’s July 30, 2025, press release regarding the report can be found here.Continue Reading Cornerstone Research: Securities Suit Filings Steady in Year’s First Half
In the following guest post, Sarah Abrams, Head of Claims Baleen Specialty, a division of Bowhead Specialty, takes a look at the D&O underwriting issues associated with Real Estate Investment Trusts (REITs), in the context of a pending securities class action lawsuit involving a cannabis-focused REIT. I would like to thank Sarah for allowing me to publish her article as a guest post 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 Sarah’s article.Continue Reading Guest Post: High on REITs
In my recent write-up about the number of securities class action lawsuit filings in the first half of 2025, I noted that there had been a significant drop off in the number of COVID-19-related securities suit filings in the first six months of 2025 compared to last year. The interesting thing is that though there has been an unmistakable drop off in the number of COVID-related securities suit filings, the fact is that now – even after more than five years since the initial COVID outbreak in the U.S. — new COVID-related securities suits are still being filed. In the latest example, late last month a shareholder filed a securities suit against Petco Health and Wellness, alleging the pet supply company had misleadingly contended that the company’s pandemic-related tailwinds could be sustained post-pandemic. A copy of the new Petco complaint can be found here.Continue Reading Pet Supply Company Hit with COVID-Related Securities Suit
In recent months, a number of companies have been hit with AI-washing securities class action lawsuits alleging that the defendant companies overstated their AI-related capabilities or opportunities (such as, for example, the securities suit filed late last week against Tempus AI, as discussed here). While there have been quite a number of AI-washing related securities suits, I have long though that the larger and longer-term AI-related securities litigation risk is not as much with respect to allegations that companies overstated their AI capabilities, as from allegations that companies understated their AI-related risks.
In a new securities class action lawsuit that reflects these latter kinds of risk, last week a plaintiff shareholder sued online platform Reddit, alleging that the company misled investors by downplaying the impact on the company’s site traffic and ad revenue from Google’s adoption of artificial intelligence search results. As discussed below, these kinds of AI-risk related allegations could represent a potential new area of AI-related securities litigation risk. A copy of the June 18, 2025, complaint against Reddit can be found here.Continue Reading Reddit Downplayed Impact of Google’s AI-Related Changes, Suit Alleges