News & Analysis as of

Securities Fraud Short Selling

Cooley LLP

Deciding Issue of First Impression, Fourth Circuit Holds Short-Seller Report Could Not Support Loss Causation – in Significant...

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On April 8, 2025, the US Court of Appeals for the Fourth Circuit affirmed the US District Court for the District of Maryland’s dismissal of all claims in Defeo et al. v. IonQ, Inc. et al., a securities class action asserting...more

Morrison & Foerster LLP

Securities Fraud Claims Based on Short Reports

Is a report by a short seller followed by a stock decline enough to plead securities fraud? This month, the Fourth Circuit considered this issue. In Defeo v. IonQ, Inc., a group of investors sued IonQ, a developer of quantum...more

Hogan Lovells

Tenth Circuit affirms dismissal of short seller’s claims against Overstock

Hogan Lovells on

On October 15, 2024, the United States Court of Appeals for the Tenth Circuit issued an opinion in In re Overstock Securities Litigation affirming the District of Utah’s dismissal of putative class action claims under the...more

A&O Shearman

Fourth Circuit Affirms District Court’s Denial Of Motion To Amend A Securities Fraud Class Action Against Quantum Computing...

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On April 8, 2025, the United States Court of Appeals for the Fourth Circuit affirmed the district court’s denial of a motion to amend a class action complaint against a quantum computing company (the “Company”) and the...more

Alston & Bird

The Fourth Circuit Joins the Ninth Circuit in Curtailing Plaintiffs’ Use of Short Seller Reports to Plead Federal Securities...

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Our Securities Litigation Group examines the Fourth Circuit decision to limit plaintiffs’ use of short seller reports to plead federal securities claims....more

White & Case LLP

DOJ & SEC Bring Enforcement Actions Against Short Sellers, Highlighting Continued Prevalence of Short Selling Against Public...

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The US Securities and Exchange Commission (SEC) and the US Department of Justice (DOJ) recently announced parallel actions against an activist short seller and his firm, charging them with multiple counts of securities fraud....more

A&O Shearman

Southern District Of New York Dismisses Securities Short Selling Claims Against Broker-Dealers, Allowing Spoofing Claims To...

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On February 9, 2022, Judge Lorna G. Schofield of the Southern District of New York denied in part and granted in part a motion to dismiss a securities fraud action asserting claims related to alleged spoofing and short...more

Skadden, Arps, Slate, Meagher & Flom LLP

Ninth Circuit Holds That Allegations in Whistleblower Complaint May Be Corrective Disclosure, but Short-Seller Posts Are Not

On October 8, 2020, the U.S. Court of Appeals for the Ninth Circuit reversed the dismissal of a putative securities fraud class action in a decision that provides additional guidance concerning the standard for pleading loss...more

Robins Kaplan LLP

Publicly Traded Companies Continue to Face High Volume of Securities Fraud Cases as Markets Tumble

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Recent tumultuous markets seem to have brought with them a continued flurry of stock drop cases, including five that were filed last week alone in New York, New Jersey, and California. The putative class actions, which seek...more

Akin Gump Strauss Hauer & Feld LLP

New York Court Dismisses Public Company’s Defamation Lawsuit Against Short Sellers

• On March 8, 2019, New York State Supreme Court Justice Joel M. Cohen dismissed a defamation action brought by Eros International plc, an Indian media company, against multiple short sellers who had questioned the accuracy...more

Cadwalader, Wickersham & Taft LLP

2016 Year In Review: Securities Litigation And Regulation

2016 was an active year in securities litigation. In the first half of 2016 alone, plaintiffs filed 119 new federal class action securities cases. It was also a busy year for SEC enforcement proceedings, with a record 868...more

Robins Kaplan LLP

Your daily dose of financial news The Brief – 1.15.16

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Goldman Sachs is ready to close a major lingering chapter of financial-crisis-era litigation, announcing yesterday that it’s agreed to a civil settlement of $5 billion to resolve claims related to its “marketing and selling...more

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