June 25, 2020

Coronavirus Related Securities Litigation

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 NameInitial Filing DateCourt Location
Norwegian Cruise Line Holdings Ltd.12-Mar-20USDC Florida (Southern)
Inovio Pharmaceuticals, Inc.13-Mar-20USDC Pennsylvania (Eastern)
Forescout Technologies, Inc.17-Mar-20USDC Delaware
Zoom Video Communications, Inc.7-Apr-20USDC California (Northern)
iAnthus Capital Holdings, Inc.20-Apr-20USDC New York (Southern)
Phoenix Tree Holdings Ltd24-Apr-20USDC New York (Southern)
SCWorx Corp29-Apr-20USDC New York (Northern)
Xperi Corporation15-May-20Delaware Chancery Court
Elanco Animal Health, Inc.20-May-20USDC Indiana (Southern)
Colony Capital, Inc.26-May-20USDC California (Central)
Sorrento Therapeutics, Inc.26-May-20USDC California (Southern)
Carnival Corporation27-May-20USDC Florida (Southern)
Wells Fargo & Company4-Jun-20USDC California (Northern)
Co-Diagnostics, Inc.15-Jun-20USDC Utah
Chembio Diagnostics, Inc.18-Jun-20USDC New York (Eastern)
United States Oil Fund, LP19-Jun-20USDC New York (Southern)

By Jeff Lubitz, Executive Director, ISS Securities Class Action Services

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