Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Shareholder Class Actions During, and After, COVID-19
As the global economy surges up and down, companies continue to work to represent accurately to their investors the current state of affairs. Given the turmoil in the markets, an increasing number of plaintiffs are bringing shareholder class action suits, citing corporate statements about COVID-19. Often, these lawsuits point to statements from the company's most recent SEC filings or associated press releases, and argue that the company knew that those statements were false or materially misleading based on actions that the company took not long after its reporting date. As first-quarter earnings season draws to a close, now is a good time to reflect on the shareholder class actions that have been brought to date related to COVID-19, and others potentially yet to come.
This article begins by discussing the most recent putative class action lawsuits related to COVID-19, and concludes by evaluating implications for future lawsuits.
Colony Capital, Inc.
On May 26, the plaintiffs filed a securities-fraud class action lawsuit against Colony Capital, Inc., a global investment firm with a focus on digital real estate, and several of its officers, in the Central District of California. The lawsuit alleges, in part, that Colony made statements in its recent public filings (4Q2019 10-Q, 2019 10-K), and associated earnings calls and press releases that painted a rosy picture of the company's health care and hospitality segments and their respective liquidity positions. For example, the complaint cites the 4Q2019 press release and the 2019 10-K, which both purportedly stated that "with respect to the health care and hospitality units, the Company successfully addressed all material near-term debt maturities allowing the respective business unit leaders to focus on improving cash flows through operational management and capital expenditures."
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.