In an opinion written in unusually direct language, a federal district court has denied the motion to dismiss in a coronavirus-related securities class action lawsuit filed against a vaccine development company. However, the motion to dismiss was granted with leave to amend as to the vaccine company’s major outside shareholder. The significant context of the pandemic itself and the swirl of media coverage surrounding it proved to be a significant factor in the court’s denial of the motion to dismiss as to the company defendants. The court’s December 22, 2021 opinion in the Vaxart securities litigation can be found here.
Continue Reading Coronavirus-Related Securities Suit Against Vaccine Company Survives Dismissal Motion

As I have noted in prior posts (most recently here), since the outbreak of the coronavirus in the U.S. last March plaintiff shareholders have filed numerous COVID-19-related securities class action lawsuits. Relatively few of these cases have reached the motion to dismiss stage, but the few dismissal motion results so far are decidedly mixed, at best, from the plaintiffs’ perspective. In the latest of these cases to fail to survive the initial pleading hurdle, the court in the COVID-19-related securities suit against biopharma firm Sorrento Therapeutics has granted the defendants’ motion to dismiss, albeit with leave to amend. The court’s November 18, 2021 order can be found here.
Continue Reading COVID-19-Related Securities Suit Against Biophama Company Dismissed

In recent posts (here and here), I have discussed new lawsuits that represent interesting new variants of coronavirus-related securities class action claims; these new kinds of suits involve defendant companies whose fortunes had prospered at the outset of the pandemic but that later saw their financial performance  decline after the initial surge eased. In the latest example of this new variant on the pandemic-related securities litigation theme, a plaintiff shareholder has filed a securities lawsuit against computer networking firm, Citrix Systems. The complaint alleges that the company misled investors about the company’s ability to initial short-term business success as the pandemic evolved. A copy of the plaintiff’s November 19, 2021 complaint can be found here.
Continue Reading Shareholder Files New Pandemic-Related Litigation Variant Suit Against Citrix Systems

With the passage of time, the impact of the pandemic on business and commerce has evolved, both at the level of the economy as a whole and at the company-specific level. Companies that suffered early in the outbreak are now returning to form, while companies that prospered due to pandemic-related conditions are now returning to earth. One company that unquestionably flourished at the outbreak of the pandemic is home exercise equipment company, Peloton Interactive. The company’s share price has recently declined as the company has experienced declining demand for its products and services.   A new COVID-related securities lawsuit has now been filed against the company, based on allegations pertaining to the company’s alleged misrepresentations about the company’s ability to sustain its pandemic-related sales boost. A copy of the November 18, 2021 related securities suit can be found here.
Continue Reading Shareholder Sues Peloton in COVID-Related Securities Suit

Just as the coronavirus pandemic itself continues to disrupt economic and social activity, it also continues to generate COVID-related securities class action litigation. In the latest COVID-related securities suit, the vaccine development firm Novavax has been hit with a securities suit pertaining to delays the company has experienced regarding its coronavirus vaccine candidate. As discussed below, this latest lawsuit shares a number of features with other previously filed coronavirus-related securities suit. The November 12, 2021 complaint in the new Novavax lawsuit can be found here.
Continue Reading Vaccine Development Firm Hit with COVID-Related Securities Suit

Nessim Mezrahi

In the following guest post, Nessim Mezrahi takes a detailed look at the factors driving D&O profitability and the securities class action loss mitigation steps insurers can take to improve profitability. Mezrahi is co-founder and CEO of SAR, a securities class action data analytics and software company. A version of this article previously was published on the PLUS Blog. I would like to thank Nessim for allowing me to publish his 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 Nessim’s article.
Continue Reading Guest Post: SCA Loss Mitigation is Critical for D&O Profitability

An online event firm that experienced a ramp-up in users during the pandemic and that completed an IPO in early in February 2021 has been hit with a securities class action lawsuit after the company disclosed that many of the customers that signed on during the early days of the pandemic did not renew or renewed only at lower service levels. This new lawsuit is the latest of example of the ways that more than a year and half in the pandemic continues to affect businesses and continues to lead to securities class action litigation and other D&O claims. The November 3, 2021 complaint filed against ON24 can be found here.
Continue Reading Online Event Firm Hit with Post-IPO COVID-Related Securities Suit

In my recent roundup of key concerns in the world of directors’ and officers’ liability, I discussed the COVID-19-related litigation phenomenon, commenting that notwithstanding the lapse of time since the coronavirus’s initial outbreak there would likely be further pandemic-related lawsuits yet to come. As if to confirm the suggestion, last week a shareholder plaintiff filed a COVID-19 related securities class action lawsuit against the actress Jessica Alba’s personal care consumer products company, The Honest Company. A copy of the plaintiff’s complaint can be found here.
Continue Reading Consumer Products Company Hit with COVID-19-Related Securities Suit

David Kaplan
Hani Farah

In a recent post (here), David Kaplan of the Saxena White P.A. law firm and Lane Arnold, a Senior Director – Legal at the University of Texas/Texas A&M Investment Management Company (UTIMCO), discussed the Catch-22 in which the court’s rulings in the Valeant securities class action opt-out cases had put prospective securities suit opt-outs. In the following guest post, Kaplan and Hani Farah, also of the Saxena White law firm, update the prior post and discuss the June 16, 2021 Third Circuit decision in the Valeant case (here), in which the appellate court overturned the lower court’s rulings and rejected the “Forfeiture Rule” that put the opt-outs into the Catch-22. I would like to thank Dave and Hani for allowing me to publish their article on this site. I welcome guest post submissions from responsible authors on topics of interest to this blog’s reader. Please contact me directly of you would like to submit a guest post. Here is Dave and Hani’s guest post.
Continue Reading Guest Post:  Update on The Valeant Appeal: Third Circuit Rejects The “Forfeiture Rule” for Opt-Outs