To print this article, all you need is to be registered or login on Mondaq.com.
In an order dated May 3, 2021, the
Securities and Exchange Commission charged sports apparel company
Under Armour, Inc. with securities violations for allegedly
misleading its investors about the bases of its revenue growth and
failing to disclose known uncertainties about its ability to meet
future revenue projections. In particular, the order charged Under
Armour with violating the antifraud provisions of Section 17(a)(2)
and (3) of the Securities Act of 1933, as well as Section 13(a) of
the Securities Exchange Act of 1934 and various other reporting
rules. Notably, the charged violations do not require scienter.
To print this article, all you need is to be registered or login on Mondaq.com.
Today over 300 million Orthodox Christians around the world
celebrate Easter. Observances of this holiday are referred to as
Pascha, Coptic Easter, or one of many other variants.
For many in the western world, the Easter celebration has already
taken place. However, Eastern Orthodox Easter is set by the Julian
calendar rather than the Gregorian calendar. Orthodox Christians
observe today s holiday in Greece, Russia, Bulgaria, Egypt,
Ethiopia, Lebanon, Ukraine, Albania, Belarus, Bosnia and
Herzegovina, Eritrea, Serbia, and many nations across the
globe.
According to the
To print this article, all you need is to be registered or login on Mondaq.com.
It has been over 15 years since the U.S. Supreme Court addressed
the pleading of loss causation in securities fraud cases.
In its 2005 decision in Dura Pharmaceuticals Inc. v. Broudo,
however, the court merely held that plaintiffs must plead and prove
a causal connection between any alleged misrepresentations and the
subsequent decline in the company s stock price.[1] It did not
address exactly how courts are supposed to assess if loss causation
has been adequately plead.
At a time when many securities class actions are based on
To print this article, all you need is to be registered or login on Mondaq.com.
This week, another shareholder derivative suit was dismissed based on a forum selection clause
contained in the company s bylaws. In November 2020, a
shareholder filed a derivative action alleging that directors and
officers of The Gap, Inc., an apparel company, had failed to create
meaningful diversity on the Board of Directors on within the
company s leadership roles. The plaintiff also alleged that Gap
made false statements about the diversity of the company s
workforce, as well as its efforts to increase diversity among its
employees.
Importantly, the plaintiff brought her lawsuit in the Northern
To print this article, all you need is to be registered or login on Mondaq.com.
Securities litigation, long a prominent – and expensive
– feature of jurisdictions such as the US, is increasingly
emerging as a threat within the English litigation landscape.
Put simply, securities actions seek redress for losses said to
have been suffered by investors who have acted on the basis of
untrue or misleading information issued to the market. This is
generally where bad news leads to a sharp and sustained drop in the
share price.
A number of factors have combined to create additional
litigation exposures for companies across all sectors, but the