Tag Archives: litigation trends

Dismissal Motion Denied in ExxonMobil Climate Change-Related Securities Suit

As I noted when it was filed in 2016, the securities class action lawsuit investors filed against ExxonMobil and certain of its executives represented something of a milestone as it was the first securities class action lawsuit of which I am aware based on climate change-related allegations. In an August 14, 2018 opinion, Northern District … Continue Reading

Guest Post: Merger Objection Lawsuits Getting Tougher for Plaintiffs’ Attorneys

As I have previously noted on this blog, merger objection litigation imposes significant costs on the defendant companies and their insurers. In the following guest post, Patrick Gallagher of the integrated communications and investor relations firm Dix & Eaton takes a look at recent developments in the merger objection litigation arena. I would like to … Continue Reading

Massive Facebook Stock Drop Draws GDPR-Related Securities Suit

It was perhaps inevitable after Facebook’s disappointing quarterly earnings announcement last week triggered what reportedly is the largest single day share price drop ever that securities class action lawsuits against the company would follow. And indeed on Friday at least two securities class action lawsuits were filed against the company. While the lawsuit filings may … Continue Reading

Cornerstone Research: Securities Suit Filings at Near Record Level in Year’s First Half

Securities class action lawsuits were filed at “near record levels” in the first six months of 2018, according to a July 25, 2018 report from Cornerstone Research. According to the report, which is entitled “Securities Class Action Filings – 2018 Midyear Assessment,” more than 750 federal securities class actions have been filed since mid-2016, the … Continue Reading

Percentage of M&A Deals Attracting Litigation Continued to Decline in 2017

The percentage of M&A transactions valued over $100 million attracting at least one merger objection lawsuit continued to decline in 2017, according to a recent Cornerstone Research study. The July 18, 2018 study, entitled “Shareholder Litigation Involving Acquisitions of Public Companies: Review of 2017 M&A Litigation” (here), also reports that the average number of lawsuits … Continue Reading

Another D&O Lawsuit Arising from Sexual Misconduct Allegations

In the latest example of a D&O lawsuit arising in the wake of allegations against a corporate executive of sexual misconduct, a shareholder has filed a securities class action lawsuit against National Beverage Corp. and certain of its executives following news reports that the company’s Chairman and CEO allegedly had inappropriately touched company pilots while … Continue Reading

More About Climate Change Disclosure

As I have previously noted on this site, climate change-related disclosure is a hot button issue for certain activist investors and non-governmental organization. A series of recent actions underscores the extent to which some groups are attempting to escalate these disclosure issues, with significant impact. As described below, a number of companies have joined collaborative … Continue Reading

The Growing Costs of Merger Objection Litigation

As most readers are aware, litigation involving objection to mergers and acquisitions transactions has been proliferating in recent years, to the point that virtually every deal draws at least one lawsuit. While many of these actions are nuisance lawsuits, they are not without their costs. Indeed, according to one recent study, the costs to defend … Continue Reading

California Enacts Sweeping Privacy Legislation

Earlier this year, after Facebook was sued in a securities class action following news that it had given access to personal user information to Cambridge Analytica, I questioned whether privacy issues might represent the next big corporate liability exposure. Among other things, in making this suggestion, I was taking into consideration that fact that the … Continue Reading

Another Look at 2017 Securities Litigation Against Life Sciences Companies

As I have previously noted, the elevated number of securities class action lawsuits against life sciences companies was an important factor in the increase of securities lawsuit filings in 2017. The significant volume of securities suits involving life sciences companies has been the subject of focused analysis, as discussed here. Now the Sidley Austin law … Continue Reading

Fewer U.S. Listed Companies – Is That a Problem?

Between 1996 and 2016, the number of U.S. listed companies declined by about 50 percent. There are now fewer U.S. listed companies than there were in 1976. Some observers have raised the alarm about this decline. For example, SEC Chair Jay Clayton in a speech last summer called the decline in the number of U.S. … Continue Reading

Ranking the Plaintiffs’ Firms by 2017 Shareholder Recoveries

As I have previously noted (for example here), a number of reports have analyzed the 2017 approved securities class action lawsuit settlements in statistical and numeric terms, such as the aggregate, average, and mean settlement amounts. But what do the 2017 securities suit settlements look like when broken down according to the lead plaintiffs’ firm … Continue Reading

Wisconsin Become First State to Mandate Disclosure of Litigation Funding Arrangements

As the use of third-party litigation funding has become more widespread, one issue that has been debated is whether or not the existence and details of a funding arrangement must be disclosed to the adversarial parties. As I have noted in prior posts, courts have struggled with the question of whether or not funding arrangements … Continue Reading

Fintech Company Hit with Securities Suit Completed Reg. A+ Offering in December

One of the changes Congress introduced in the Jumpstart our Business Startups (JOBS) Act of 2012 was the creation of a new securities offering exemption for smaller companies. In March 2015, the SEC introduced rules implementing this provision, known as Regulation A+. The track record for Reg. A+ offerings has been mixed, as discussed further … Continue Reading

Do Privacy Issues Represent the Next Big D&O Liability Exposure?

For some time, observers (including me) have been discussing the extent to which the rising numbers of corporate data breaches would translate into to D&O litigation. There of course have been some data breach-related D&O lawsuits;  indeed, plaintiffs’ lawyers have recently for the first time managed to secure some success with these kinds of suits … Continue Reading

Yahoo Settles Data Breach-Related Securities Suit for $80 million

The newly disclosed $80 million settlement of the Yahoo data breach-related securities class action lawsuit will not make the list of the Top 100 securities suit settlements, but it is significant in its own way just the same. Because the settlement is the first substantial data breach-related shareholder lawsuit recovery, it represents a milestone development … Continue Reading
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