News & Analysis as of

Class Action Initial Public Offering (IPO)

A class action is a type of legal action where a representative individual or group of individuals can bring a claim on behalf of a larger group or class who share a common legal interest.
Cornerstone Research

Securities Class Action Filings: 2024 Midyear Assessment - Key Trends in Federal Filings

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This is an excerpt from Securities Class Action Filings 2024 Midyear Assessment - COVID-19-related filings are on pace to increase by 27% in 2024. The number of cryptocurrency-related filings in 2024 H1 (three) was in line...more

Woodruff Sawyer

[Webinar] D&O Insurance Trends: Looking Ahead to 2025 - September 17th, 10:00 am - 11:00 am PT

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The streak of good news in D&O litigation risk ends this year, with a rise in class action filings and bigger settlements. But the D&O market is still soft, so staying on top of the evolving risk landscape will help you...more

Woodruff Sawyer

Numbers Are Up for SCA Filings and Settlements—A Repeat of 2023?

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It has been two years since public companies saw a marked decrease in the number of securities class action filings against them. In 2022, 168 class actions were filed, a record low since 2014; however, 2024 activity is...more

Woodruff Sawyer

How to Minimize Risk in the Current Litigation Environment

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This month's SPAC Notebook follows up on our recent discussion of risk mitigation and due diligence tips for foreign companies going public in the US. We want to share more information on the current litigation environment...more

A&O Shearman

Eastern District Of New York Grants Motion To Dismiss Proposed Class Action Against Mobile Game Development Company

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On March 18, 2024, Judge Rachel P. Kovner of the United States District Court for the Eastern District of New York dismissed with prejudice a putative shareholders’ class action against a mobile game development company (the...more

Woodruff Sawyer

Strict Liability Energy: IPO Litigation and Risk Management

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Imagine that you are a startup founder and CEO. You toil for years in the hot sun, painstakingly cultivating your business as it grows from a vulnerable seed into a promising sapling. It’s grow or die. You grow. Now you...more

Woodruff Sawyer

SPACs Poised to Turn a Corner in 2024: Annual Risk Update

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Here we are again—another year of SPAC ennui. We’re hearing derisive comments about the death of SPACs, unending deadline extensions, almost 200 liquidations, 70 deal terminations, and general SPAC malaise. If you’ve followed...more

Woodruff Sawyer

Securities Class Action Trends 2023: Not a Repeat of Year 2022 [REPORT]

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Despite fewer companies going public in 2023, we saw an unwelcome uptick in class action lawsuit filings. After a period of relief in securities class action (SCA) filings—three years to be exact—the tide is officially...more

ArentFox Schiff

Legal Considerations for GCs and CFOs in the Fashion and Retail Industry in 2024

ArentFox Schiff on

The fashion and retail industry experienced another year of considerable change in 2023. As advancements in artificial intelligence (AI) spurred innovation within the industry, consumers and regulators worldwide called for...more

Cornerstone Research

Securities Class Action Trend Cases

Cornerstone Research on

From SPACs to COVID-19, several trends have appeared in core filing activity in recent years. The data below is from Securities Class Action Filings—2023 Midyear Assessment....more

Woodruff Sawyer

Mid-Year Update on Securities Class Actions [Report]

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Securities class action activity in 2023 reflects the environment the business community is experiencing: Economic activity has slowed as companies deal with the high costs of doing business. In the first half of 2023, the...more

Woodruff Sawyer

SPAC Litigation Mid-Year Update: Delaware Opens the Gates

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With SPAC IPOs virtually gone but SPAC mergers (aka de-SPACs) continuing at a steady pace since the beginning of the year, the questions around getting a deal done boil down to the following: How and where can companies get...more

Latham & Watkins LLP

Supreme Court Slack Decision Confirms Narrow Interpretation of Section 11 Claims

Latham & Watkins LLP on

The unanimous opinion requires shareholder plaintiffs to plead and prove that they purchased shares traceable to an allegedly false or misleading registration statement. On June 1, 2023, the US Supreme Court issued its...more

A&O Shearman

New Jersey Appellate Division Affirms Dismissal Of Putative Securities Class Action On The Basis Of Federal Forum Selection...

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On May 15, 2023, the Appellate Division of the Superior Court of New Jersey unanimously affirmed the dismissal with prejudice of a putative securities class action asserting claims under the Securities Act of 1933 against a...more

Skadden, Arps, Slate, Meagher & Flom LLP

Inside the Courts – An Update From Skadden Securities Litigators - May 2023

Supreme Court Hears Argument on Traceability Requirement in Circuit-Split Slack v. Pirani - Key Points - - Before the end of June, the U.S. Supreme Court is expected to issue a decision in a high-profile securities case...more

Goodwin

Court Dismisses Post-SPAC Class Action for Lack of Standing

Goodwin on

On March 31, 2023, U.S. District Judge Ronnie Abrams of the Southern District of New York dismissed a putative securities class action against CarLotz, Inc. (CarLotz), and certain of its officers and directors on the grounds...more

Woodruff Sawyer

DataBox 2022 Year-End Report

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Woodruff Sawyer's D&O DataBox™ Year-End Report provides insights about securities class action activities, developments, and historical trends—sourced from DataBox, our proprietary database and leading resource for securities...more

Jones Day

2022 Securities Litigation Year in Review

Jones Day on

During 2022, securities case filings fell for the fourth consecutive year and were down slightly from 2021. The number of announced settlements rose substantially last year, as did total settlement amounts. The 2022...more

Woodruff Sawyer

SPAC Litigation by the Numbers: Surprisingly Positive Trends in 2022

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Tumultuous, exasperating, difficult, nerve-wracking, and frustrating are all apt descriptions of the 2022 SPAC market. We’ve summarized some of its ups and downs in our year in review blog post from October and have touched...more

Skadden, Arps, Slate, Meagher & Flom LLP

Trends in Forum Selection Provisions, Merger Objection Class Actions and SPACs Continue To Shape Securities Litigation

In the first nine months of 2022, plaintiffs filed 157 securities class action lawsuits, according to Cornerstone Research — a figure only slightly lower than the 162 filings in the same period in 2021. Looking behind the...more

Skadden, Arps, Slate, Meagher & Flom LLP

Inside the Courts – An Update From Skadden Securities Litigators - December 2022

Cornerstone Research reports that during the first six months of 2022, plaintiffs filed 110 securities class actions, a pace that is generally in line — 2.8% higher — with what we saw in the second half of 2021. Looking...more

Jones Day

Recent Motion-to-Dismiss Decisions Underscore Uncertain Litigation Prospects for SPAC Participants

Jones Day on

The use of SPACs to take companies public increased dramatically in recent years, but many of these new companies performed poorly after entering the public capital markets. This poor performance, often accompanied by...more

A&O Shearman

California Appellate Court Affirms Decision To Dismiss Putative Securities Class Action Against Hair Implantation Company Because...

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On April 28, 2022, the First Appellate District Court of Appeals for the State of California affirmed the dismissal of putative securities class action against a hair transplant technology company (the “Company”) alleging...more

Woodruff Sawyer

Securities Class Action Trends for Life Sciences, 2021: REPORT

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Insights Priya Cherian Huskins, Esq.Senior Vice President, Management LiabilityEditor, Management Liability/D&O May 10, 2022 /Management Liability/D&O While the life sciences sector has experienced a slowdown in IPO activity...more

Kennedys

Short-Seller Reports in SPAC Litigation: Credible Evidence or Fabricated Self-Interest?

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The use of Special Purpose Acquisition Companies (“SPACs”) has exploded in recent years. SPACs are an increasingly popular way for private companies to become publicly traded without undergoing a traditional initial public...more

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