In a recent Law360 article, Katten Litigation partners Richard Zelichov and Christina Costley explore the increased likelihood of many more event-driven securities issues being litigated in the months and years to come as a result of the novel coronavirus and COVID-19. Plaintiffs' attorneys have already begun using the tragic spread of the virus as the basis for asserting securities fraud liability, and many more are expected as these attorneys seek to capitalize on a volatile stock market and unprecedented market changes.
The article focuses on topics such as:
- Cases already brought and COVID-19 disclosures
- Culpability for opinion statements issued before a consensus emerged about COVID-19
- Whether companies had adequate risk disclosures
- The outlook for more Section 11 cases given significant stock market decline
Read "COVID-19 Securities Class Actions May Hinge On Disclosures" in its entirety.