Companies in the pharmaceutical industry are frequent targets of securities class action lawsuits. In the following guest post, Tony Kriesel, Claims Specialist with IQUW; Elan Kandel, a Member of the Bailey Cavalieri law firm; and James Talbert, an Associate at Bailey Cavalieri, take a look at the reasons for the pharmaceutical industry’s high securities litigation frequency experience and at the implications of the lawsuit frequency for pharmaceutical companies and their insurers. They also consider the significance of the interrelated claims provision typically found in D&O insurance policies for securities claims involving pharmaceutical companies. I would like to thank the authors 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 the authors’ article.
Continue Reading Guest Post: D&O Risks and Challenges for Pharmaceutical Companies and their Insurers
NERA: 2020 Securities Suit Filings Down vs. 2019, But Above Long-Term Levels
Federal court securities class action lawsuit filings declined 22% in 2020 compared to 2019, but the 2020 filings were still above the long-term historical average annual numbers of filings, according to NERA Economic Consulting’s annual securities litigation report. The 2020 securities suit filing drop-off reflected a decline in the number of federal court merger objection class action lawsuits filed during the year, offset in part by the number of coronavirus-related securities suits. NERA’s January 25, 2021 report can be found here.
Continue Reading NERA: 2020 Securities Suit Filings Down vs. 2019, But Above Long-Term Levels
Cornerstone Research: Securities Lawsuit Filings Rise to Highest Level in 20 Years
According to the latest annual securities litigation survey, securities class action lawsuit filings were at “record” levels in 2016. A surge of federal court merger objection lawsuit filings during the year accounted for much of the activity, but even so-called “traditional” securities lawsuit filings were at elevated levels, according to report, which was release jointly by Cornerstone Research and the Stanford Law School Class Action Clearinghouse. The January 31, 2017 report, entitled “Securities Class Action Filings: 2016 Year in Review,” can be found here. Cornerstone Research’s and the Stanford Law School Class Action Clearinghouse’s January 31, 2017 press release can be found here.
Continue Reading Cornerstone Research: Securities Lawsuit Filings Rise to Highest Level in 20 Years
Securities Class Action Lawsuit Filings Continue at Elevated Pace in the Year’s First Half
Continuing 2015’s elevated pace, the number of securities class action lawsuit filings during the first half of 2016 accrued in numbers well above both historical averages and recent levels. The first half 2016 levels puts the securities suit filing activity on pace for the most active year for securities class action lawsuit filings since 2004.
Continue Reading Securities Class Action Lawsuit Filings Continue at Elevated Pace in the Year’s First Half
Guest Post: Bankruptcy in Securities Class Actions: Case Outcomes, Individual Liability and Side A Protection
Of the different contexts within which securities class action lawsuits arise, one of the most significant is the bankruptcy context. As detailed in the following guest post from Michael Klausner and Jason Hegland of Stanford Law School, securities class action lawsuit arising in bankruptcy are different from cases involving solvent companies. Their guest post provides
Are Securities Class Action Opt-Out Actions Back?
Settlement opt-outs have been always been a feature of securities class action litigation. However, as part of the settlements of the huge cases filed during the era of corporate scandals at the beginning of the last decade, opt outs became more prevalent and they represented an increasingly significant part of the case resolution. Many of
Meanwhile, Other Securities Lawsuits
When, as has been the case recently, there is a single predominant story, there also is a danger that other important developments may be overlooked. The subprime and credit crisis meltdown and related litigation has been so preoccupying that almost nothing else has broken through the noise.
However, a recent casual observation made me
Point/Counterpoint: Insurance Coverage for Section 11 Settlements
One of the most closely followed recent case developments in the D&O insurance arena is the ruling in the CNL Hotels & Resorts case that a Section 11 settlement did not represent covered loss under a D&O insurance policy. As I noted in a recent post (here), on August 18, 2008, the CNL
Credit Crisis Litigation Wave Rolls On
The current securities litigation wave first arose out of the collapse of the residential real estate subprime mortgage market. As I have previously noted (here), the wave long ago ceased to be just about subprime mortgages, as the litigation as expanded to encompass the fallout from a more general credit crisis. As demonstrated
About Those New Securities Lawsuits…
Over the past two days, plaintiffs’ attorneys have launched a couple of new securities lawsuits. Nothing particularly noteworthy about that, in and of itself. But upon closer review, there are some rather interesting things about these new lawsuits. I note my observations below after briefly describing each of the two new lawsuits.
The first