Securities class action litigation observers know that securities suits frequently are accompanied by shareholder derivative lawsuits based on the same essential allegations. A recent report from Cornerstone Research, entitled “Parallel Derivative Action Settlement Outcomes: 2023 Review and Analysis,” takes a look at the settlement patterns for these kinds of parallel derivative suits. As the report shows, in recent years, nearly half of all securities class action lawsuits have been accompanied by a derivative lawsuit, and the securities suits with accompanying derivative suits typically are associated with higher settlements. The Cornerstone Research report can be found here. Hat Tip to the August 26, 2024 Cooley law firm memo about the report, here.Continue Reading Parallel Derivative Suits Associated with Higher Securities Suit Settlements
Among the companies with D&O litigation in recent years arising from sexual misconduct allegations was the clothing and consumer products company L Brands. The parties to the various legal proceedings arising out of the allegations have reached a settlement in which L Brands has agreed to adopt a number of management and governance measures; in order to fund these initiatives, the company has committed to funding of $90 million over the course of five years. As discussed below, the settlement has several interesting features. The parties’ July 30, 2021 stipulation of settlement can be found 
In the latest D&O lawsuit based on allegations related to the COVID-19 outbreak, a plaintiff shareholder has filed derivative lawsuit against the board of a vaccine developer, Vaxart, claiming that corporate insiders and the company’s largest investor profited when the company falsely claimed that it was part of the federal government’s accelerated program for the development of a COVID-19 vaccine. The complaint in the lawsuit, which alleges that the defendants violated their fiduciary duties and federal securities laws regarding proxy disclosures, can be found