Securities Litigation 101: Commencing and Contesting a Federal Securities Class Action

Thursday, December 12, 2019 | 6:00 pm – 8:30 pm

 

Program Chair:

Laura H. Posner
Cohen Milstein Sellers & Toll PLLC

  • A motion to dismiss often proves a decisive event in resolving a federal securities class action, raising the stakes both for defeating or winning the motion. A premier faculty of experienced members of the plaintiff and defense bar will present an overview of the legal issues and strategic considerations that inform the filing of a securities class action and lead plaintiff selection process, the drafting of a securities complaint and the briefing of a motion to dismiss. The panel will address the fundamentals of a securities claim, existing precedent and evolving theories, as seen from both sides of the bar. The panel will also offer practical suggestions to increase each side’s chance of success. The presentation will be particularly useful for litigators who are beginning a securities litigation practice as well as seasoned litigators returning to the practice who would like to refresh their knowledge.

    Live Program & Webcast: $179 for Members | $279 for Nonmembers
    In-House Counsel: Free for Members | $209 for Nonmembers

    Members who are Recent Law Graduates, Newly Admitted Lawyers (admitted for the first time in any state or country 2017-2019), Judges, or attorneys that practice within the Government, Academic or Not-for-Profit sectors attend this program for free.

  • Serena P. Hallowell
    Labaton Sucharow LLP

    Lauren Ormsbee
    Bernstein Litowitz Berger & Grossman LLP

    Kayvan B. Sadeghi
    Schiff Hardin LLP

    David F. Wertheimer
    Hogan Lovells US LLP

  • 6:00 pm – 6:05 pm Welcome & Introduction
    6:05 pm – 6:40 pm Pre-Motion Issues

    Pre-Complaint Investigation

    • Parallel proceedings
    • 90 day look back & damages
    • Morrison & class size

    Lead Counsel/Lead Plaintiff Selection

    Multiple Actions/Forums

    • Calpers v. ANZ Securities impact
    • Opt-outs (’33 & ’34 Act claims)
      • Removal

    Defense Issues

    • Discovery stay
    • Document retention
    • Witnesses & whistleblowers
    • Coordination w/other proceedings
    • D&O coverage
    • Investigation

    Standing

    Statute of Limitations/Repose

    • How do 2/5 year limits work
      • Arco, 949. F. Supp. 2d 532, 545 (SDNY 2013)(how 2 yr. limit works under Merck, 559 U.S. 633)
      • Worshipful, 217 F. Supp. 3d 996, 1002 (ED Ark 2016) (describing circuit split over when 5 yr. begins)
    6:40 pm – 7:20 pm Material Statements and Omissions

    Janus

    • Who is a maker
    • Group pleading

    Materiality

    • Matrixx
    • Accounting restatements
    • SAB 99
    • Puffery

    Omnicare & Opinions

    Safeharbor/forward looking statements

    Non-actionable statements

    • True statements of historical fact
      • No inference re: future performance
    • Claims based on non-disclosure of corporate mismanagement

    Omissions

    • Liability for pure omissions
    • Leidos and Reg. S-K Item 303
    • SEC investigations/Wells notices
    • A duty to disclose wrongdoing?

    Reliance (only generally)

    • Basic/Halliburton
    • Affiliated Ute & class actions
    7:20 pm – 7:35 pm Break
    7:35 pm – 8:15 pm Scienter

    What is scienter

    • Recklessness defined

    Pleading scienter: PSLRA and Tellabs

    Methods of pleading scienter

    • Novak & 2 prong approach

    Pleading motive

    • Personal benefit
    • Stock sales & stock plans

    Pleading recklessness

    • Access to contradictory info
    • Duty to monitor & red flags
    • Confidential Witnesses
    • Supporting/contrary inferences
      • Concurrent investigations/settlements
      • Employment termination
      • SOX certification
      • GAAP violations
      • Executive position
      • Magnitude of error
      • Core operations
      • Self disclosure
      • Stock purchases
      • Economic irrationality
    • Scienter & omissions

    Corporate scienter

    8:15 pm – 8:30 pm Loss Causation

    Dura

    Approaches to loss causation

    • Corrective disclosures
    • Materialization of risk

    Pleading loss causation

    • Rule 9(b) & PSLRA
    • Indicia
      • Investigations
      • Poor earnings

  • CLE Credit
    New York:
     2.5 Professional Practice
    New Jersey:
     2.6 General
    California:
     2.5 General
    Pennsylvania:
     2.0 General


  • Sponsoring Association Committee:
    Securities Litigation, Laura H. Posner, Chair

    Sponsorship Opportunities are Available! Please Contact:
    Angie Avila, Manager, Membership Outreach and Sponsorships | (212) 382-6608 | aavila@nycbar.org