The D&O Diary

A Periodic Journal Containing Items of Interest From the World of Directors & Officers Liability, With Occasional Commentary

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Kevin LaCroix

Latest from The D&O Diary

The D&O Diary

Walmart Hit with Opioid-Related Securities Class Action Lawsuit

By Kevin LaCroix

January 21, 2021

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The opioid crisis is not anything new; it has been around for years. Indeed, more than three years ago I posted an item noting the outbreak at the time of a rash of opioid-related securities class action lawsuits. But while the opioid crisis has been around for years, plaintiff shareholders continue to file opioid-related securities suits. On January 20, 2021, a plaintiff shareholder filed a securities class action lawsuit against Walmart in the District of…

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Chinese Social Media Company Hit with Coronavirus-Related Securities Suit

By Kevin LaCroix

January 21, 2021

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In the latest sign that coronavirus-related securities class action lawsuit filings will continue into the New Year, on January 20, 2021, a plaintiff shareholder filed a COVID-19-related securities suit against the Chinese Internet social media company Lizhi, Inc. The lawsuit relates to the coronavirus outbreak now more than a year ago in China, and to the company’s January 2020 U.S. IPO. A copy of the plaintiff’s complaint can be found here. Background and…

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A “New Era” of Caremark Claims?

By Kevin LaCroix

January 20, 2021

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One of the more noteworthy recent developments in corporate and securities litigation has been the resurgence of Delaware law “duty of oversight” claims, as I noted in my recent annual round-up of D&O liability issues. Delaware courts have sustained several of these kinds of “Caremark duty” claims, which until recently were distinctly disfavored – which raises the questions of why these claims are now proving viable, and whether the renewed risk of duty of oversight…

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Diagnostic Testing Company Hit with First Coronavirus-Related Securities Suit of 2021

By Kevin LaCroix

January 18, 2021

In what is the first coronavirus-related securities class action lawsuit filed in 2021, and in what is also as far as I know the first coronavirus-related securities suit filed following the filing of an SEC enforcement action against the same company, a plaintiff shareholder has filed an action against diagnostic testing company Decision Diagnostics Corp., relating to the company’s claims during the period March to June 2020 that it had developed a finger-prick test that…

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Guest Post: Halliburton II Price Impact Defenses Can Limit Severity on Deficient Exchange Act Claims

By Kevin LaCroix

January 12, 2021

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Nessim Mizrahi Stephen Sigrist In the following guest post, Nessim Mezrahi and Stephen Sigrist discuss their analysis of Rule 10b-5 private securities fraud litigation in 2019 and 2020 against U.S. Issuers, and the impact of recent guidance by the 2nd and 7th Circuits on Halliburton II stock price impact defenses at the class certification stage. Mezrahi is cofounder and CEO and Sigrist is a data scientist at SAR. SAR’s January 8, 2021 press release discussing…

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Guest Post: SolarWinds – Einstein Failed Us, and the Cyber Insurance Markets will Feel the Squeeze

By Kevin LaCroix

January 11, 2021

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As I noted in a prior post, the recent state-sponsored cyber incident carried out through an attack on SolarWinds has a number of important implications. As noted in the following guest post from Paul Ferrillo, the incident could also have important implications for the cyber insurance marketplace. Paul is a partner in the McDermott, Will & Emery law firm. I would like to thank Paul for allowing me to publish this article as a…

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The Top Ten D&O Stories of 2020

By Kevin LaCroix

January 4, 2021

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The directors’ and officers’ liability environment is always changing, but 2020 was a particularly eventful year, with important consequences for the D&O insurance marketplace. The past year’s many developments also have significant implications for what may lie ahead in 2021 – and possibly for years to come. I have set out below the Top Ten D&O Stories of 2020, with a focus on the future implications. Please note that on Wednesday, January 13, 2021 at…

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Securities Suit Filings Declined in 2020 But Remained Above Historical Levels

By Kevin LaCroix

January 3, 2021

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The number of federal court securities class action lawsuit filings declined in 2020 relative to the most recent prior years, largely due to short-term filing lulls during the second and fourth quarters of the year. Though the number of filings last year was below the record-setting levels seen during the years 2017 to 2019, the number of 2020 filings was still well above historical annual averages. The Number of Federal Court Securities Suits: There…

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SPAC-Acquired Company Hit with Post-Acquisition Securities Suit

By Kevin LaCroix

December 22, 2020

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As I noted in a recent post, one of the most distinctive phenomena in the U.S. financial markets this year has been the tremendous amount of IPO activity involving Special Purpose Acquisition Companies (SPACs). According to SPACInsider (here), there have been 243 SPAC IPOs so far in 2020 (as of December 22, 2020), raising total gross proceeds of over $81.3 billion. As I also noted in my prior post, lawsuits relating to…

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Canadian Testing Company Hit with COVID-19-Related Securities Suit

By Kevin LaCroix

December 20, 2020

In the latest coronavirus outbreak-related securities suit, a Canadian diagnostic medical testing company that hoped to obtain emergency regulatory authorization for its rapid COVID-19 antigen test has been hit with a securities class action lawsuit after the company failed to obtain the regulatory approvals. A copy of the plaintiff’s complaint, filed on December 17, 2020 in the Central District of California, can be found here. In addition, as discussed below, this past week, the…