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Fresenius As “Event Driven” Litigation; The Delaware Supreme Court Rapidly Affirms the Trial Court Ruling That Fresenius Properly Invoked the Material Adverse Event Clause

Posted in Class Actions, D + O Issues, Litigation Industry, SEC Disclosures, Securities
Over the last couple of years, defense oriented commentators have used the meme “event driven securities litigation” as part of complaining about the increasing volume of class action litigation. From my perspective, there could be merit to some complaints, but the meme is far too broad and all “event driven” cases are not equal. Why?… Continue Reading

F Cubed Suits – “The Myth of Morrison: Securities Fraud Litigation Against Foreign Issuers”

Posted in Class Actions, Securities
A detailed data driven study of securities lawsuits before and after Morrison is the subject of a new paper by Professor Davidoff Solomon and colleagues. A summary is online in a November 21, 2018 article at; the full paper is available for download at SSRN. Part of the summary is pasted below. “In The Myth of Morrison:… Continue Reading

The Scale of Class Action Securities Litigation – “NERA: 2017 Securities Suits Filed at “Record Pace”

Posted in Litigation Industry, Securities
To continue with a theme regarding the scale of mass tort litigation, this post touches on  the scale of what one can call “securities class action suits.” The numbers are set out in an open access  January 2018 report by NERA, and a related January 29, 2018 commentary at the D&O Diary. Again, one needs… Continue Reading

Litigation Funders Firm Up in Securities Suits Targeting Plaintiff’s Firm Slater & Gordon

Posted in Litigation Industry, Mass Tort Issues, Securities
The ironic saga continues as litigation funders are firmed up for securities suits against Slater & Gordon, a well-known plaintiff’s firm from Australia that used IPO proceeds to expand internationally. The latest update is in a March 23, 2016 article from the Global  Legal Post.  Slater & Gordon’s expansion into the UK  hit a major… Continue Reading

Financial Benchmarks Manipulation – Are Regulators and Litigators Looking at the Wrong Activities?

Posted in Liability Standards, Securities
What happens when financial regulators are trying to look at and regulate the wrong subject? Even more financial fraud? The point is raised by an new article on the various “benchmark manipulation” cases, such as LIBOR.    The thesis is outline in an August 27, 2104 Blue Sky blog post by Andrew Verstein, and the article itself… Continue Reading

Delaware Jurists Write on Contracts and Alternative Entities – Presumably Many Will Listen

Posted in Law Review Articles, Liability Standards, Securities
“No brainer.” That phrase often was used when I was a baby lawyer.  It’s an apt phrase regarding whether to read a new article from leaders of the Delaware court system.  Francis Pileggi at his blog on Delaware law offers a different set of words to explain the situation (his post is where I learned… Continue Reading

Dark Pools, Halliburton and Efficient Markets Theories

Posted in Litigation Industry, Securities
These are interesting times for thinking about securities litigation claims. With Halliburton now decided, the securities bar can move past all the sturm und drang that preceded its issuance. Meanwhile, litigation over high speed trading and dark pools provides an interesting lens for thinking about the ruling. For at least a couple of years, high… Continue Reading

International Consumer Product Safety Conference – Brussels, Belgium

Posted in Global Tort Litigation, Litigation Industry, Securities
An online page presents information about this upcoming global conference on consumer products. The world continues to get smaller with increases in cross-border communication. The page provides the following overview: “International Consumer Product Safety Conference – Brussels, Belgium June 17-18, 2014 Thank you for your interest in ICPHSO’s 10th International Symposium. ICPHSO will again provide… Continue Reading

The Beginning of the Litigation Over High Frequency and High Speed Trading

Posted in Litigation Industry, Securities, Uncategorized
High frequency trading. It’s a “growing cancer” on Wall Street, according to Charles Schwab.  It’s the subject of Flash Boys: A Wall Street Revolt, another great, investigative book by Michael Lewis. Now the litigation is underway – see here for the plaintiff side and here for a defense side D & O article. The litigation will… Continue Reading

Twiqbal, Pleadings, and Subjectivity of Decisions on Accountant Scienter – A Review of the Outcomes

Posted in Securities
Alison Frankel provided a helpful new post on the conclusions reached by business professors after a study of 144 federal court decisions on scienter in accounting class action cases. The conclusion? "The law of pleading scienter against external auditors in (securities fraud) cases is so vague and inconsistent that, as a practical matter, judges have… Continue Reading

What Happens to Derivative Shareholder Claims When Shareholders Change Due to a Merger After Ruinous Events?

Posted in Securities
Corporate stock prices can plummet when a company faces a crisis. Suppose the crisis results in a change of ownership via a merger at a significantly reduced share price. Does that mean that ownership of derivative claims is ended for the persons who held the now terminated stock of the troubled company? In a recent… Continue Reading

Financial Industry Risks Go Up – Gupta Convicted for Insider Trading, and 110 Years for Stanford

Posted in Securities
Not a good week for the financial industry, and reputation risks increase accordingly.  The jury did not take long to find Mr. Gupta guilty of insider trading. And, Allen Stanford was sentenced to 110 years in prison for financial fraud. The Sunday morning talk shows will have plenty of grist. "Messagers" will have spin. The… Continue Reading

Materiality of a Misrepresentation by a Public Company – The US Supreme Court Has Granted Certiorari Securities to Review the Issue as Related to Class Certification

Posted in Securities
The US Supreme Court granted certiorari yesterday on a significant issue for securities litigation class actions. The case is a securities claim in the Ninth Circuit against Amgen, and involves Amgen’s statements about product safety for two products. Scotusblog includes a concise summary of the "materiality" issue, and links to the opinion below and the briefs… Continue Reading