While the global pandemic may have disrupted many industries, it has not stopped plaintiffs from continuing to file COVID-19-related securities fraud class actions under Section 10(b) of the Securities Exchange Act. As we previously observed, in the first wave of COVID-19-related securities fraud class actions - filed in March and April 2020 - plaintiffs primarily challenged public statements made by companies that were directly involved in the response to COVID-19, such as healthcare companies, or in industries significantly impacted by COVID-19, such as videoconferencing technology and travel. In those cases, plaintiffs primarily challenged public statements that companies made about the direct, and often significant, impact of COVID-19 on their businesses.

In the second wave of COVID-19-related securities fraud litigation - defined for purposes of this article as suits filed between May and September 2020 - plaintiffs have continued to bring suit against companies directly involved in or significantly impacted by COVID-19 but have also broadened their scope. Plaintiffs have now targeted a wider range of companies, including cybersecurity, cannabis and real estate companies, and have challenged a range of alleged misstatements, including statements that fall into two broad categories concerning (i) a company’s receipt, or use, of federal funds or loans in connection with COVID-19-related programs; and (ii) a company’s representations about how COVID-19 impacted the company’s economic projections and financial results. While non-exhaustive, this article summarizes some of the most interesting second wave cases in each category.