Financial Recovery Technologies Fast Five provides you with the top news in shareholder class actions. Stay up-to-date on the latest developments in settled (U.S./Canada) claims filing opportunities, Antitrust settlements, Global Group Litigation matters and more. For more information, contact your Financial Recovery Technologies representative or email us.

1. Dick’s Sporting Goods Board Slams Stock Lawsuit as Nonsensical

The Dick’s Sporting Goods Inc. board, including executive chairman Ed Stack, fired back in Delaware at claims they gave themselves equity awards timed to skyrocket in value as the market recovered from the Covid-19 pandemic, ridiculing the allegations as “breach by clairvoyance.” The shareholder lawsuit “relies on the assertion that Stack, acting in the midst of an unprecedented public health crisis, somehow ‘knew’ that Dick’s stock price would rapidly recover,” the board says in a motion to dismiss the case from Delaware’s Chancery Court. Click here to read the full article (subscription may be required).

2. Biopharmaceutical Firm Sued Over COVID-19 Vaccine Statements

A putative class-action securities lawsuit has been filed against a biopharmaceutical company that allegedly promised more than it could ultimately deliver in terms of a COVID-19 vaccine. Malvern, Pennsylvania-based Ocugen Corp., which identifies itself as a company focused on developing gene therapies to cure blindness and developing a COVID-19 vaccine, said in February that it had reached an agreement with a biotechnology company in India to develop, manufacture and “commercialize” a COVID-19 vaccine, according to last week’s filing in Roberto Nicanor et al. v. Ocugen Inc., Shank Musunuri and Sanjay Subramanian. Click here to read the full article.

3. Mega Class Actions Becoming ‘Mainstream’ in Europe

The number of class actions brought in Europe has risen ‘relentlessly’ over the past five years, with US firms and litigation funders tapping into an increasingly lucrative market, a study has found. According to a report by City firm CMS, 109 class actions were filed in Europe in 2020, up from 70 in 2019 and 48 in 2018. The UK was Europe’s most active jurisdiction, with over half of class actions brought there between 2016 and 2021. The Netherlands has also seen a sharp increase in cases. CMS said US-based class action firms are increasingly opening offices in Europe, while litigation funding is becoming more widespread. Click here to read the full article.

4. Will SPAC Restatement Wave Trigger Shareholder Litigation?

From April 21 to date, almost 500 SPACs have restated their accounting for warrants, and additional restatements may be forthcoming. Many have commented that the volume of restatements demonstrates that the accounting is complex and nuanced. For at least one entity created through a SPAC, Virgin Galactic Holdings Inc., a securities class action has been filed alleging improper accounting and deficient internal controls following a warrant restatement. Whether other class actions will follow depends, at least in part, on the magnitude of stock price reactions in response to the financial statement restatement and/or disclosures of material weaknesses in internal controls. Click here to read the full article (subscription may be required).

5. Supreme Court Clarifies That in Securities-Fraud Class Actions, Courts Should Consider Whether the Alleged Misrepresentation Was “Generic”

Goldman Sachs Group, Inc. v. Arkansas Teacher Retirement System, No. 20-222. On June 21, 2021, the Supreme Court held that in a securities-fraud class action, the district court should consider whether the alleged misrepresentation is generic in determining whether the misrepresentation affected the price of the security at issue. The Court also held that the defendant bears the burden to prove the lack of price impact by a preponderance of the evidence. Click here to read the full article.

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