The United States Court of Appeals for the Fourth Circuit recently joined a growing consensus among federal appellate courts: short-seller reports, without more, rarely suffice to plead loss causation under the federal...more
In Max Royal LLC v. Atieva, Inc., No. 23-16049, 2024 U.S. App. LEXIS 19910 (9th Cir. Aug. 8, 2024), the United States Court of Appeals for the Ninth Circuit affirmed the dismissal of a securities class action brought by...more
8/16/2024
/ Acquisitions ,
Appeals ,
Class Action ,
Corporate Governance ,
Dismissals ,
Investors ,
Rule 10(b) ,
Securities and Exchange Commission (SEC) ,
Securities Litigation ,
Securities Violations ,
Special Purpose Acquisition Companies (SPACs)
In Securities and Exchange Commission v. Jarkesy, No. 22-859, 2024 WL 3187811 (U.S. June 27, 2024), the United Stated Supreme Court (Roberts, C.J.) held that when the Securities and Exchange Commission (“SEC”) seeks civil...more
In Macquarie Infrastructure Corp. v. Moab Partners, No. 22-1165, 2024 WL 1588706 (U.S. Apr. 12, 2024) (“MIC”), the United States Supreme Court (Sotomayor, J.) held unanimously that “pure omissions” in a Securities and...more
4/23/2024
/ Disclosure Requirements ,
Enforcement Actions ,
Macquarie Infrastructure Corp v Moab Partners LP ,
Omissions ,
Publicly-Traded Companies ,
Rule 10b-5 ,
SCOTUS ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Securities Litigation ,
Securities Regulation ,
Securities Violations
In Roth v. Foris Ventures, LLC, Nos. 22-16632, 22-16633, 2023 U.S. App. LEXIS 30081 (9th Cir. Nov. 13, 2023), the United States Court of Appeals for the Ninth Circuit partially reversed the dismissal of a shareholder...more
11/20/2023
/ Appeals ,
Beneficial Owner ,
Enforcement Actions ,
No-Action Letters ,
Publicly-Traded Companies ,
Remand ,
Section 16 ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act of 1934 ,
Securities Litigation ,
Shareholders
In Anderson v. Magellan Health, Inc., No. 2021-0202, — A.3d —-, 2023 WL 4364524 (Del. Ch. July 6, 2023) (McCormick, C.), the Delaware Court of Chancery addressed the circumstances under which the Court will award a...more
7/18/2023
/ Acquisitions ,
Attorney's Fees ,
Board of Directors ,
Breach of Duty ,
Business Litigation ,
Corporate Governance ,
Delaware ,
Disclosure ,
Fiduciary Duty ,
Injunctive Relief ,
Mergers ,
Proxy Statements ,
Securities and Exchange Commission (SEC) ,
Securities Litigation ,
Shareholder Litigation ,
Shareholders
In ZF Micro Solutions, Inc. v. TAT Capital Partners, Ltd., 2022 WL 4090879 (Cal. App. Aug. 8, 2022), the Fourth Appellate District of the California Court of Appeal decided, as a matter of first impression, that a...more
In Sirott v. Superior Court, 2022 Cal. App. LEXIS 389 (Cal. App. May 5, 2022), the First Appellate District of the California Court of Appeal (Humes, J.) analyzed the ownership requirements a plaintiff must satisfy to pursue...more
In Crest v. Padilla, No. 20STCV37513 (Cal. Super. Apr. 1, 2022), the Superior Court of California for the County of Los Angeles (Green, J.) declared that Section 301.4 of the California Corporations Code is unconstitutional...more
4/13/2022
/ Appeals ,
Board of Directors ,
California ,
Corporate Governance ,
Corporations Code ,
Diversity ,
Diversity and Inclusion Standards (D&I) ,
Governor Newsom ,
Publicly-Traded Companies ,
Securities and Exchange Commission (SEC) ,
Securities Litigation ,
State and Local Government ,
State Constitutions ,
Summary Judgment
In Tola v. Bryant, No. 16150, 2022 Cal. App. LEXIS 241 (Cal. App. Mar. 24, 2022), the First Appellate District of the California Court of Appeal applied Delaware’s new formulation of the test for determining whether a...more
4/7/2022
/ Appeals ,
Appellate Courts ,
Board of Directors ,
California ,
Controlling Stockholders ,
Corporate Governance ,
DE Supreme Court ,
Delaware ,
Derivative Tort Claims ,
Securities Litigation ,
Standing ,
State and Local Government
In Rubenstein v. Int’l Value Advisers, LLC, No. 19-560-CV, 2020 WL 2549507 (2d Cir. May 20, 2020), the United States Court of Appeals for the Second Circuit affirmed a district court’s decision holding that an investor was...more
In Sciabacucchi v. Salzberg, No. 346, 2019, 2020 WL 1280785 (Del. Mar. 18, 2020), the Delaware Supreme Court reversed a Delaware Court of Chancery (Laster, V.C.) decision declaring invalid a federal forum selection provision...more
n Singh v. Cigna Corp., No. 17-3484-cv, 2019 U.S. App. LEXIS 6637 (2d Cir. Mar. 5, 2019), the United States Court of Appeals for the Second Circuit affirmed the dismissal of a class action complaint that purported to base a...more
3/13/2019
/ Material Misstatements ,
Medicare ,
Policies and Procedures ,
Puffery ,
Regulatory Requirements ,
Rule 10b-5 ,
Scienter ,
Securities Exchange Act ,
Securities Fraud ,
Securities Litigation ,
Stock Drop Litigation
In Drulias v. 1st Century Bancshares, Inc., No. H045049, 2018 WL 6735137 (Cal. App. Dec. 21, 2018), the California Court of Appeal, Sixth Appellate District, affirmed an order staying a stockholder lawsuit brought in the...more
1/28/2019
/ Appeals ,
Board of Directors ,
Breach of Duty ,
Bylaws ,
Cal Code of Civil Procedure ,
Common Stock ,
Corporations Code ,
Enforcement ,
Fiduciary Duty ,
Foreign Corporations ,
Forum Non Conveniens ,
Forum Selection ,
Internal Affairs Doctrine ,
Jurisdiction ,
Mergers ,
Motion To Stay ,
Putative Class Actions ,
Retroactive Application ,
Securities Litigation ,
Statutory Rights
In Sciabacucchi v. Salzberg, C.A. No. 2017-0931-JTL, 2018 WL 6719718 (Del. Ch. Dec. 19, 2018), the Delaware Court of Chancery (Laster, V.C.) held that a forum-selection provision in a Delaware corporation’s charter or bylaws...more
In Varjabedian v. Emulex Corp., No. 16-55088, 2018 U.S. App. LEXIS 10000 (9th Cir. Apr. 20, 2018), the United States Court of Appeals for the Ninth Circuit split from the Second, Third, Fifth, Sixth and Eleventh Circuits to...more
4/27/2018
/ Acquisitions ,
Class Action ,
Disclosure Requirements ,
Dismissals ,
False Statements ,
Financial Adviser ,
Negligence ,
Pleading Standards ,
Rule 10(b) ,
Rule 10b-5 ,
Scienter ,
Section 17(a) ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Securities Litigation
In O’Donnell v. AXA Equitable Life Insurance Co., No. 17-cv-1085, 2018 WL 1720808 (2d Cir. Apr. 10, 2018), the United States Court of Appeals for the Second Circuit reversed an order dismissing a variable annuity...more
4/17/2018
/ Appeals ,
Breach of Contract ,
Class Action ,
Cross Motions ,
Misrepresentation ,
Motion to Dismiss ,
Motion to Remand ,
Omissions ,
Reversal ,
Securities Fraud ,
Securities Litigation ,
SLUSA
In Waggoner v. Barclays PLC, No. 16-1912 (2d Cir. Nov. 6, 2017), the United States Court of Appeals for the Second Circuit, in a Rule 10b-5 securities fraud action, affirmed the district court’s order granting class...more
In a shareholder derivative action, to survive a motion to dismiss for failure to plead facts showing demand futility, a derivative plaintiff must plead particularized facts showing either actual involvement by a majority of...more
7/17/2017
/ Board of Directors ,
Breach of Duty ,
Bribery ,
Demand Futility ,
Derivative Suit ,
Fiduciary Duty ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Official ,
Illegal Conduct ,
Motion to Dismiss ,
Pleading Standards ,
Qualcomm ,
Securities and Exchange Commission (SEC) ,
Securities Litigation ,
Shareholder Litigation ,
White Collar Crimes
In two recent decisions, City of Miami General Employees’ & Sanitation Employees’ Retirement Trust v. Comstock, C.A. No. 9980-CB, 2016 Del. Ch. LEXIS 133 (Del. Ch. Aug. 24, 2016) (Bouchard, C.) (“Comstock”), and Larkin v....more
9/6/2016
/ Breach of Duty ,
Business Judgment Rule ,
Controlling Stockholders ,
Corporate Counsel ,
Damages ,
Fairness Standard ,
Fiduciary Duty ,
Mergers ,
Motion to Dismiss ,
Putative Class Actions ,
Securities Litigation ,
Standard of Review
In In re Sanofi Securities Litigation, No. 15-588-cv, 2016 U.S. App. LEXIS 4107 (2d Cir. Mar. 4, 2016), the United States Court of Appeals for the Second Circuit affirmed the dismissal of class action complaints alleging that...more
In Chadbourne & Parke LLP v. Troice, Nos. 12-79, 12-86 and 12-88, 2014 U.S. LEXIS 1644 (U.S. Feb. 26, 2014), the Supreme Court of the United States resolved a split in the circuits regarding whether alleged misrepresentations...more