Aside from the current litigation dominating today’s headlines between Twitter and Elon Musk – which
Litigation
A New Approach to Measuring Litigation Risk
Securities litigation is a major and costly source of corporate risk that can affect many aspects of companies’ operations. The task of identifying the causes and consequences of this risk is, however, challenging because researchers observe only companies that are …
Cooley Discusses Looming Trial of SEC’s Reg FD Case Against AT&T
Reg FD cases rarely get to court, but here’s one that, barring a settlement, appears to be headed to trial. In a 129-page opinion in SEC v. AT&T, 9/08/22, the federal district court for the SDNY denied summary judgment …
Gibson Dunn Offers 2022 Mid-Year Securities Litigation Update
The number of securities lawsuits filed since January has remained steady compared to the first half of 2021. We have already seen many notable developments in securities law this year. This mid-year update provides an overview of the major developments …
ISS Discusses Proposed $810 Million Settlement in Twitter Shareholder Class Action
What a long, strange trip it’s been for Twitter shareholders since the company’s November 7, 2013 Initial Public Offering on the New York Stock Exchange.
…ISS Discusses Five Non-U.S. Class Actions Investors Should Pay Attention To
As institutional investors know, a vast majority of shareholder related class actions take place in the United States. This is accurate in terms of both newly filed cases and settlements.
However, non-North American shareholder litigation is significantly important to investors …
Arnold & Porter Discusses California Challenge to Rulings Rejecting Board Diversification
The California Secretary of State has appealed a decision by the Los Angeles County Superior Court striking down the second of California’s two board diversity laws, which required all publicly traded companies headquartered in California to include a minimum number …
ISS Discusses Class-Action Settlements Requiring Investor Action
How Does Delaware Do It? Judges Alone Don’t Explain Chancery’s Speed
On July 19, 2022, in the Twitter v. Musk litigation, Chancellor Kathaleen McCormick presided over what was likely the most widely observed hearing on a motion to expedite in the Delaware Court of Chancery’s history. While deal bust-ups are front …
Twitter v. Musk: Where Are the Arbs?
Every pundit and commentator has by now analyzed the ongoing battle between Elon Musk and Twitter over Musk’s attempt to walk away from their deal. Almost all of these evaluations have rated Twitter as having a considerably stronger case, because …
ISS Discusses Securities Class-Action Settlements in First Half of 2022
Issuer Liability: Ownership Structure and the Circularity Debate
In many countries, investors can hold publicly traded companies liable for public misstatements. Issuer liability is intuitively appealing because statements are generally made on behalf of the company by its representatives. Moreover, large companies typically have deep pockets, which ensures …
Wachtell Lipton Discusses Important Supreme Court Business Cases
Last Thursday, the Supreme Court concluded its most tumultuous Term in recent memory. The Term was marked by a number of closely divided decisions on contentious issues ranging from President Biden’s vaccination mandate to gun rights to religious liberty. Anticipation …
The Two-Front War on the Administrative State: How Far Will the Supreme Court Go?
The hostility of at least a plurality of the Supreme Court to the Administrative State has become increasingly evident. This faction has been pursuing a two-front war: First, it has significantly curbed (or seems about to curb) the enforcement powers …
Sullivan & Cromwell Discusses Supreme Court Decision on Exemption to Federal Arbitration Act
Among other things, the Federal Arbitration Act (FAA) authorizes U.S. courts to enforce arbitration agreements in “contract[s] evidencing a transaction involving commerce,” but excludes from its scope “contracts of employment of seamen, railroad employees, or any other class of workers …
Katten Discusses Shareholder Litigation Risk in an Unstable Geopolitical Environment
Over the past two years, U.S. public companies faced an unpredictable risk environment. Two geopolitical crises – the Covid-19 pandemic, and the Russian invasion of Ukraine – strained international supply chains and destabilized financial markets.
It is tempting to view …
Does the Threat of Securities Class Actions Add Value for Shareholders? Evidence from China
Securities class actions (SCA) are an important governance mechanism in the U.S. securities market, but there is a significant debate about their costs and benefits to investors. SCA are intended to serve two key functions in investor protection: disciplining and …
To Remove or Not To Remove: Is that the Question in 1933 Act Securities Cases?
When the removal provisions of the Securities Act of 1933 (1933 Act) and the Class Action Fairness Act of 2005 (CAFA) conflict, the 1933 Act should prevail. The conflict arises in cases involving initial offerings of noncovered securities when plaintiffs …
Gibson Dunn Offers 2021 Year-End Securities Litigation Update
Federal securities filings continued to slow during the second half of 2021. The volume of new securities cases filed in 2021 fell by 36% compared to 2020, and 51% compared to 2019. Nonetheless, federal and state securities laws continue to …