litigation trends

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The extraordinary levels of securities litigation filings during 2017 have been the subject of numerous commentaries, including on this blog. In a March 19, 2018 post on The CLS Blue Sky Blog, Columbia Law School Professor John Coffee adds his observations to the discussion about the 2017 securities suit filings. In his article, entitled “Securities Litigation in 2017: It Was the Best of Times, It Was the Worst of Times” (here), Coffee’s commentary about last year’s securities suit filings is consistent with prior reports and analyses. One specific aspect of his commentary – relating to the phenomenon of event-driven securities litigation – is particularly noteworthy, as discussed below.
Continue Reading Scrutinizing Event-Driven Securities Litigation  

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 – as discussed here, Yahoo recently settled a data breach related securities class action lawsuit for $80 million. In light of the Yahoo settlement, the possibility for further data breach-related D&O litigation seems likely. But as I was reading the complaint in a securities class action lawsuit filed earlier this week against Facebook, I began to think that a related but slightly different data security-related concern might actually present an even more significant risk of future D&O claims.
Continue Reading Do Privacy Issues Represent the Next Big D&O Liability Exposure?

Britt Latham
Brian Irving

In the following guest post, Britt K. Latham and Brian Irving of the  Bass, Berry & Sims PLC  law firm take a look at the SEC’s enforcement action track record under the Trump administration and take a look ahead at what may be next for the agency. I would like to thank Britt and Brian for their willingness to allow me to publish their article as a guest post. 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 Britt and Brian’s article.
Continue Reading Guest Post: SEC Enforcement Still Strong Under Trump – What’s Next?

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 in a number of respects, as discussed below. The parties’ March 2, 2018 Stipulation and Agreement of Settlement can be found here.
Continue Reading Yahoo Settles Data Breach-Related Securities Suit for $80 million

Prior observers have already noted that in 2017 the value of securities class action lawsuit settlements plunged to lows not seen in years, largely due to from a shortage of large or even moderate settlements. These observations about the lack of larger settlement are underscored by the latest large securities suit settlement report from ISS Securities Class Action Services (ISS). In its annual report, entitled “The Top 100 U.S. Class Action Settlements of All Time (as of December 31, 2017)” (here), ISS reports that only two securities class action lawsuit settlements approved during 2017 were large enough to make the Top 100 list. The report has a number of other interesting observations about securities suit settlements as well.
Continue Reading ISS Releases Updated Top 100 U.S. Securities Suit Settlements List

One of the most distinct phenomena at the peak of the Internet bubble in the late 90s was the way that so many otherwise entirely ordinary companies added “dot com” to their names to try to cash in on the frenzy. It now looks as if some companies are attempting moves from the same playbook amidst the current cryptocurrency mania. Companies with no prior connection either to bitcoin or blockchain are adopting names or strategies as a way to try to ride the current wave, even where the companies have little or no experience with the technologies. Regulators noting these developments have started sounding the alarm bell. And in at least one instance, these kinds of developments have led to securities litigation.
Continue Reading Company Capitalizing on Blockchain Mania Draws Securities Suit

This past year was an eventful one in the corporate and securities litigation arena. In the following guest post, Haynes and Boone, LLP Partners Dan Gold, Kit Addleman, Thad Behrens, Emily Westridge Black, Carrie Huff, Tim Newman, David Siegal, and Odean Volker take a look at the important securities litigation developments during 2017. This article was previously published as a Haynes and Boone client alert. I would like to thank the authors for their willingness to publish their memorandum on this site. I welcome guest post submissions from responsible authors on topics of interest to readers of this site. Please contact me directly if you are interested in submitting a guest post. Here is the authors’ guest post.
Continue Reading Guest Post: 2017 Year in Review — Securities Litigation

As has been well-documented on this site, 2017 was an extraordinary year for securities class action lawsuit filings, with a record number of new lawsuits filed at a record rate. Among the important contributing factors to the significant volume of securities suit filings during the year was the volume of lawsuits filed against life sciences companies. The significance of the litigation activity against biopharma companies, a subset of the overall life sciences sector, was the subject of a detailed and precise analysis in a guest post earlier this week.

There is still the question of the meaning of large volume of litigation involving life sciences companies generally.  According to the latest annual analysis from the Dechert law firm, the number of securities lawsuits filed against life sciences companies in 2017 increased 30% from the previous year, and increased more than 225% from only five years earlier. The law firm’s February 8, 2018 report entitled “Developments in Securities Fraud Class Actions Against U.S. Life Sciences Companies: 2017 Edition” can be found here.
Continue Reading A Detailed Look at 2017 Securities Litigation Involving Life Sciences Companies

In the following guest post, Boris Feldman of the Wilson Sonsini law firm takes a look at important current developments in California shareholder litigation. Boris’s article previously was published as an AIG whitepaper. I would like to thank Boris and AIG for allowing me to publish this article as a guest post. 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 Boris’s article.
Continue Reading Guest Post: Current Developments in Shareholder Litigation in California

For the second straight year, securities class action lawsuit filings reached record levels in 2017, according to the January 30, 2018 report from Cornerstone Research. According to the report, entitled “Securities Class Action Filings: 2017 Year in Review” (here), securities suit filings during the year reached “unprecedented levels” and companies on U.S. exchanges were more likely to be the subject of a securities suit than in any previous year. Cornerstone Research’s January 30, 2018 press release about the report can be found here. My own analysis of the 2017 securities class action lawsuit filings can be found here.
Continue Reading Cornerstone Research: 2017 Securities Lawsuit Filings at “Unprecedented Levels”