Thank you for sharing!

Your article was successfully shared with the contacts you provided.
John C. Coffee Jr.

Securities litigation is now near an all-time high. Why? It seems to be the product of multiple factors, but two stand out: (1) the migration of “merger objection” cases from Delaware to federal court, and (2) the appearance of a new style of securities litigation that is increasingly called “event-driven” litigation. In “event-driven” securities litigation, the issuer’s financial statements are not challenged; rather, there is usually an “event” (a fire or explosion, an airplane crash, a product recall, or a law enforcement action) and a consequent stock price fall. Plaintiffs then seek to relate this “event” to prior statements by the issuer that assured the public that it was in full regulatory compliance or that attested to the high quality of its product. For example, the issuer asserts in a series of periodic filings that it is in full regulatory compliance and then is subjected to regulatory action that surprises the market and drives down its stock price. For example, in Omnicare v. Laborers Dist. Council Construction Indus. Pension Fund, 135 S. Ct. 1318 (2015), the issuer stated:

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at customercare@alm.com


America's Claims Executive (ACE) 2020Event

ACE Leadership Forum & Expo is the annual conference for Senior Claims Executives in Insurance organizations.

Get More Information

Banking Litigation & Regulation Forum 2020Event

Delivers the key insights and practical solutions to acutely address the complex minefield of UK banking litigation & regulation.

Get More Information

Commercial Litigation & Arbitration Forum 2020Event

For senior dispute resolution professionals to network and engage through open debate, panels, expert speakers & breakout sessions

Get More Information

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.