Since the Coronavirus pandemic started to spread across the U.S. earlier this year, it was clear securities class action litigation wasn’t likely to be too far behind. This wasn’t a surprise given market conditions – as investors experienced significant market fluctuations (and often times on a daily basis).
The first COVID-19 related class action was filed against Norwegian Cruise Line Holdings, alleging misleading sales tactics and sharing misleading updates related to its business and operations. Another case example is against Inovio Pharmaceuticals, where allegations state the company falsely claimed to develop a COVID-19 vaccine (this case is known as the “three hour”). And a third case example is against Co-Diagnostics, where the court complaint alleges the company continuously, knowingly, and willfully misstated their “100% accurate” diagnostic tests while officers and directors exercised & sold low-priced options into the market.
As of this moment, ISS SCAS believes 16 total COVID-19 securities class action cases have been filed in U.S. courts. And all of these cases remain active… those that are aware of the securities litigation process understand the entire lifecycle from a newly filed case to a legally approved settlement can easily take a few years, if not significantly longer.
The ISS SCAS team will continue to closely monitor these actions and provide periodic updates to our clients and the industry. Individuals can also be kept up-to-date of all types of securities litigation via @iss_scas on Twitter.
|Company Name||Initial Filing Date||Court Location|
|Norwegian Cruise Line Holdings Ltd.||12-Mar-20||USDC Florida (Southern)|
|Inovio Pharmaceuticals, Inc.||13-Mar-20||USDC Pennsylvania (Eastern)|
|Forescout Technologies, Inc.||17-Mar-20||USDC Delaware|
|Zoom Video Communications, Inc.||7-Apr-20||USDC California (Northern)|
|iAnthus Capital Holdings, Inc.||20-Apr-20||USDC New York (Southern)|
|Phoenix Tree Holdings Ltd||24-Apr-20||USDC New York (Southern)|
|SCWorx Corp||29-Apr-20||USDC New York (Northern)|
|Xperi Corporation||15-May-20||Delaware Chancery Court|
|Elanco Animal Health, Inc.||20-May-20||USDC Indiana (Southern)|
|Colony Capital, Inc.||26-May-20||USDC California (Central)|
|Sorrento Therapeutics, Inc.||26-May-20||USDC California (Southern)|
|Carnival Corporation||27-May-20||USDC Florida (Southern)|
|Wells Fargo & Company||4-Jun-20||USDC California (Northern)|
|Co-Diagnostics, Inc.||15-Jun-20||USDC Utah|
|Chembio Diagnostics, Inc.||18-Jun-20||USDC New York (Eastern)|
|United States Oil Fund, LP||19-Jun-20||USDC New York (Southern)|
By Jeff Lubitz, Executive Director, ISS Securities Class Action Services