The Litigation Counsellor®
Class Claims Filed Against Biotech Company Over Exaggerated COVID-19 Vaccine Promises
On August 24, 2020, class claims for violations of the federal securities laws were filed in federal court in the Northern District of California against biotech company Vaxart Inc. (“Vaxart”). A group of securities holders alleged that Vaxart engaged in artificially inflating the company’s stock price by announcing false and misleading information concerning the company’s COVID-19 oral recombinant vaccine candidate.
Fitbit Shareholders Ask Judge to Approve $33M in Securities Suit
On January 8, 2018, Fitbit investors asked U.S. District Judge Susan Illson to grant preliminary approval of a $33 million settlement involving Fitbit, company executives and underwriters who artificially inflated stock prices while concealing defects associated with its fitness-tracking technology.
Frontier Shareholders File Class Claims Arguing Securities Fraud
On October 4, 2017, a group of Frontier Communications Corp. investors filed putative class claims against the communications services provider in Connecticut federal court. Plaintiffs allege that Frontier violated securities law when it failed to disclose the financial impact of a large number of unpaid user accounts taken on by the company after its $10.5 billon acquisition of Verizon Inc. wire line operations in California, Texas and Florida.
Bondholders Playing Larger Role in Securities Class Actions According to Study
Class actions brought on behalf of bondholders of public companies are playing a larger role in the overall landscape of securities class actions, an article recently published in the Minnesota Law Review says. Bondholders, often considered an afterthought in the securities fraud context due to claims by equity holders predominating, have been generating more recoveries, warranting a reconsideration of the prospects of bondholder claims in public company securities fraud cases.