Category: Securities fraud

Securities Litigation + Enforcement Highlights for Q3 2023

Through the summer and into the fall of 2023, Cooley’s securities litigation + enforcement practice continued to provide our clients with thoughtful analysis on recent developments in securities law, while also obtaining key wins for them. Below, we’ve rounded up key insights and developments from our team over the past […]

Second Circuit Confirms That Corrective Disclosure Mismatch May Preclude Class Certification

On August 10, 2023, the US Court of Appeals for the Second Circuit dealt a blow to securities class action plaintiffs when it decertified the investor class in Arkansas Teacher Retirement System v. Goldman Sachs Group, Inc. After a long history of the case going up to the US Supreme […]

Eleventh Circuit Reiterates Loss Causation not a Given at Pleading Stage

Securities class action plaintiffs and defendants often disagree about the degree of difficulty to plead loss causation at the motion to dismiss phase. The US Court of Appeals for the Eleventh Circuit recently shed some light on this debate, affirming the dismissal of a securities class action and signaling that […]

Securities Plaintiffs Pursuing Crypto, Banking and High-Dollar-Value Cases in 2023, According to Cornerstone Research Report

Cornerstone Research (a top consulting and expert testimony firm) recently issued its highly anticipated midyear report on securities class action filings. The report examines recent trends in securities class action filings and provides insights about the types of cases filed, maximum dollar loss (MDL) amounts, and the impact of recent […]

Securities Litigation + Enforcement Highlights From Q2 2023

As 2023 reached its midpoint, Cooley’s securities litigation + enforcement practice continued its track record of obtaining victories for clients while serving as thought leaders on issues impacting the securities litigation and enforcement landscape. Below, we’ve rounded up key insights and developments from our team over recent months.

District Court Upholds Forum Selection Provision for Claims Brought Derivatively Under Section 10(b)

In what appears to be a novel decision, the US District Court for the Northern District of Texas recently upheld a Delaware forum-selection clause as to claims asserted derivatively under Section 10(b) of the Exchange Act.  As Cydney Posner observes in this Cooley PubCo post (and as we recently wrote […]

On Remand, Texas District Court Concludes Fifth Circuit Dealt ‘Iatrogenic Blow’ to Securities Plaintiff, Dismisses Case

As discussed in a previous blog post, the US Court of Appeals for the Fifth Circuit issued a January 2023 decision that reversed the dismissal of a putative securities class action against Six Flags on the grounds that the plaintiff’s complaint adequately stated a claim for securities fraud. In a […]

Ninth Circuit Upholds Delaware Forum-Selection Clause, Dismisses Federal Derivative Action

On June 1, 2023, the US Court of Appeals for the Ninth Circuit held in a split en banc decision that forum-selection clauses requiring shareholders to file derivative claims in the Delaware Court of Chancery are enforceable as applied to claims asserted derivatively under Section 14(a) of the Securities Exchange […]

Fourth Circuit Issues Decisive Opinion Affirming Dismissal of Securities Class Action Against MacroGenics

Biotech companies are often faced with a dilemma – they need to raise capital to develop novel therapies, and in doing so, they often express honest optimism about interim and topline results from their drugs in development. But they cannot be reasonably expected to disclose all results or interpretations of […]

Oklahoma Firefighters Pension & Retirement Systems v. Six Flags:
Fifth Circuit Opinion Reviving Securities Class Action Creates Tension with Other Circuits on Key Issues

Introduction On January 18, 2023, the Fifth Circuit unanimously reversed the Northern District of Texas’s dismissal of a securities class action contending that Six Flags and two of its executives misled investors by projecting impossible timelines for opening new theme parks in China, which were anticipated to be highly profitable. […]