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SEC Proposes Sweeping New Cybersecurity Rules: Is Your Company Prepared?

On March 15, 2023 the Securities and Exchange Commission (“SEC”) proposed three new sets of rules (the “Proposed Rules”) which, if adopted, would require a variety of companies to beef up their cybersecurity policies and data...more

Commercial Litigation Outlook - 2023

Welcome to the third annual installment of Seyfarth Shaw’s Commercial Litigation Outlook, where our nationally recognized team provides insights about litigation issues and trends to expect in 2023. The continuing global...more

Judge Posner Called It a “Racket”: A Federal Judge Pushes Back Against a Very Similar “Mootness Fee” Petition in Federal Merger...

In a recent decision from the United States District Court for the Southern District of New York, a federal Judge pushed back against the common but abusive practice of “mootness fee” payoffs in public M&A deals. In the...more

SEC Continues ESG Push With Proposed Investment Disclosure and Fund Name Requirements

Continuing its push to make Environmental, Social, and Governance (“ESG”) issues a key agency priority, on May 25, 2022 the SEC announced two sets of proposed rule amendments taking aim at “greenwashing” in investment funds....more

SEC’s In-House Adjudication Deemed Unconstitutional by Fifth Circuit

A key enforcement power of the Securities and Exchange Commission (“SEC”)—its ability to elect to conduct in-house administrative proceedings before Administrative Law Judges (“ALJs”) instead of bringing an action in federal...more

The Grundfest Solution Works Again and Corporate Counsel of Public Companies Should Take Notice of the Upside of Federal Forum...

On April 28, 2022, the California Court of Appeals became the first appellate court outside of Delaware to uphold a federal forum provision (“FFP”) in governing corporate documents. The appellate decision was issued in the...more

Delaware Chancery Court Refuses to Stay SPAC Class Action, Highlighting the Court’s Interest in SPAC Issues—and the Risk of...

On March 7, 2022, the Delaware Chancery Court denied a motion to stay a putative class action pending the resolution of a federal securities class action, notwithstanding that the federal action was first-filed and concerned...more

Plaintiffs’ Abusive Tax on M&A Deals Changed Form But Continued in 2021

Seyfarth has conducted a thorough analysis of the litigation filed in 2021 arising out of mergers and acquisitions for the year.1 While there is, as reported elsewhere, a marked decrease in class action filings arising from...more

New York Attorney General’s Office’s Recent EyeMed Investigation Highlights Need to Meet Expanded Data Privacy Standards of New...

Earlier this month, the New York Attorney General’s Office issued findings of its investigation into a data security incident involving EyeMed Vision Care LLC (“EyeMed”) as well as the agreement that it entered into with the...more

Wildflowers Are Not Intentionally Planted—Workplace Relationship Policies Can Be

Seyfarth Synopsis: Summertime is here. That time of year when wildflowers cover the landscape, birds are singing, and summer love is in the air—and that air may just drift into the workplace. And while a budding relationship...more

In the Wake of the Pandora’s Box Opened by the Supreme Court’s Cyan Decision, Court to Address Discovery Stay Question in State...

On July 2, 2021, the US Supreme Court granted the Petition for a Writ of Certiorari filed in Pivotal Software, to address one of the many questions stemming from the Court’s decision in Cyan, which permitted state courts to...more

Rule 10b5-1: Fix the Cracks But Save the Baby

On June 7, 2021, U.S. Securities and Exchange Commission Chair Gary Gensler announced at the CFO Network Summit that he has asked his staff to make recommendations for the Commission’s consideration on how it might “freshen...more

Recent New York Appellate Decision Highlights That Cannabis Companies Going Public are Subject to Typical Securities Litigation...

For any company, going public is fraught with securities litigation risks. As highlighted in the recent New York State Appellate Court decision In The Matter of Sundial Growers, Inc. Securities Litigation, companies operating...more

Considering a SPAC Transaction? Keep Securities Litigation Risks at Top-of-Mind

Seyfarth Synopsis: Special Purpose Acquisition Company (“SPAC”) transactions have dramatically increased since the start of 2020, bringing with them risk of securities litigation....more

First Decisions in COVID-19 Securities Motions to Dismiss Offer Mixed Results

Seyfarth Synopsis: Two recent decisions on motions to dismiss in COVID-related class action securities litigations—one successfully dismissed, the other largely surviving—show that a bare allegation of failure to predict the...more

First Securities Class Action Complaint Filed In 2021 Following Disclosure Of Cyberattack On SolarWinds Corporation

On January 4, 2021, a putative securities class action complaint was filed in the United States District Court for the Western District of Texas against SolarWinds Corporation (“SolarWinds”), SolarWinds’ CEO and CFO.[1] This...more

Southern District of New York Dismisses Section 14(a) Claim Arising Out Of Packaging Companies’ Merger

On January 12, 2021, the United States District Court for the Southern District of New York dismissed a putative class action complaint against Bemis Company Inc. and members of its board of directors (collectively, “Bemis”)...more

SEC Modernizes Decades-Old Investor Marketing Rules to Address Evolution of Markets and Technology

Seyfarth Synopsis: The Securities and Exchange Commission (“SEC”) adopted a new investor marketing rule to replace and modernize its current advertising and cash solicitation rules. Neither of these rules has been...more

Dropbox Becomes Third California Superior Court Decision To Enforce Delaware Corporations’ Federal Forum Provision For Securities...

Three separate California Superior Courts have recently upheld federal forum provisions (“FFP”) in governing corporate documents to preclude state court actions under the Securities Act of 1933 (the “Securities Act”) (15...more

New York Appellate Division Decides First Securities Act Case Since Cyan

On December 3, 2020, the New York State Appellate Division for the First Judicial Department dismissed an action alleging claims under the Securities Act of 1933 (the “Securities Act”) in Lyu v. Ruhnn Holdings Limited....more

California Superior Courts Enforce Delaware Corporations’ Federal Forum Provision For Securities Act Lawsuits

In recent decisions, two separate California Superior Courts have upheld federal forum provisions (“FFP”) in governing corporate documents to preclude state court actions under the Securities Act of 1933 (the “Securities...more

Supreme Court Permits SEC Disgorgement to Survive—Leaves Potential Limitations to Lower Courts

Seyfarth Synopsis: On Monday, June 22, 2020, the Supreme Court issued its decision in Liu et al v. Securities and Exchange Commission (“SEC”). In an 8-1 decision, written by Justice Sotomayor...more

Over 50 M&A Deals Have Been Challenged This Year by a Single Group of Lawyers

The Delaware Court of Chancery’s 2016 decision in In re Trulia Stockholder Litigation sought to address the trend of meritless merger lawsuits flooding the Chancery Court.  Following the decision, however, the battleground of...more

Event-Driven Securities Litigation in the Age of COVID-19

Seyfarth Synopsis: The COVID-19 pandemic has already spurred several private securities class action lawsuits and Securities and Exchange Commission (“SEC”) enforcement actions. Companies that deal with COVID-19 on a daily...more

District Courts In New Jersey And New York Dismiss Securities Class Actions Against Life Science Companies Emphasizing the High...

The United States District Courts for the District of New Jersey and the Southern District of New York recently dismissed putative securities class action complaints filed against life science companies in Smith v. Antares...more

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