The number of securities-related lawsuits filed in the U.S. has been rising rapidly in recent years, particularly after M&A transactions and other significant corporate developments are announced.
S&P Global Market Intelligence tracks these cases filed against companies in our covered industries. The following information is compiled on a best-efforts basis twice monthly.
Application software
Lyft Inc. is facing a lawsuit from 14 women over its alleged inaction on reports of sexual assault that took place during trips. The plaintiffs claim that the ride-hailing company was aware of the alleged sexual misconduct of its drivers since 2015 but has made a concerted effort to cover up the reports. The plaintiffs are seeking damages for past and future medical expenses and costs incurred in the litigation, among other forms of relief.
Forest products
A complaint was filed against Chicago Flameproof & Wood Specialties Corp. and certain of its executive officers, Northern Illinois Lumber Specialties Corp. and Madison Montgomery LLC alleging shareholder oppression, refusal to permit examination of records, breach of fiduciary duty and breach of contract. The defendants allegedly refused to give the plaintiff permission to inspect corporate records and excluded him from any corporate meetings and communications. The defendants also allegedly schemed to dilute the plaintiff's shares by creating Madison Montgomery and using the newly created company's capital to purchase newly issued Chicago Flameproof shares below fair market value. The plaintiff seeks, among other things, complete access to corporate records and the removal of Vincent Mancini as president and Maddy Rossobillo as vice president of the corporation.
Healthcare equipment
A verified stockholder derivative complaint was filed against the board of directors and certain senior officers of Inogen Inc. alleging federal securities law violations, breach of fiduciary duty, waste of corporate assets and unjust enrichment. The plaintiff accused the defendants of making false and misleading representations to the public regarding the strength of the company's business metrics and growth opportunities. Among other allegations, the lawsuit claims that the size and growth rate of Inogen's total addressable market was overstated and the growth of the company's direct-to-consumer sales was largely due to abusive sales tactics.
Insurance
The U.S. Federal Trade Commission filed a lawsuit to block Fidelity National Financial Inc.'s proposed acquisition of Stewart Information Services Corp. The two companies agreed to terminate the deal after the FTC issued the administrative complaint seeking to block the deal.
Insurance technology
Anthony Aquila, founder and former CEO of Solera Holdings Inc., sued the Vista Equity Partners Management LLC-backed company for allegedly refusing to honor its obligations related to his vested stock options worth more than $100 million.
Life sciences tools and services
Bio-Rad Laboratories Inc. filed a lawsuit against 10x Genomics Inc. for allegedly infringing a patent licensed exclusively to Bio-Rad from Harvard University and the Medical Research Council. This is the second action Bio-Rad has taken against 10X Genomics related to the its Next GEM products and the third against the company overall.
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Fluidigm Corp. filed a patent infringement suit against privately held IonPath Inc. related to its proprietary imaging technology. Fluidigm is seeking damages and injunctive relief requiring IONpath to stop selling its multiplexed ion beam imaging technology, which allegedly infringes U.S. patents covering Fluidigm's mass cytometry technology.
Oil and gas equipment and services
A verified stockholder derivative complaint was filed against certain board members and upper management members of Mammoth Energy Services Inc. over securities law violations, breach of fiduciary duty, waste of corporate assets and unjust enrichment. The defendants allegedly caused the company to file with the SEC financial documents riddled with falsities and misrepresentations as the materials were based on false assertions regarding a contract between the company's subsidiary, Cobra Acquisitions LLC, and Puerto Rico Electric Power Authority. The action allegedly caused substantial damage to Mammoth's reputation, goodwill and standing in the business community and exposed the company to potential liability for violations of federal securities laws.
Packaged foods and meats producers
Around 18 chicken producers in the U.S., including Tyson Foods Inc., Pilgrim's Pride Corp. and Perdue Farms Inc., are facing a class-action lawsuit over allegations that they colluded to fix and reduce hourly wages paid to employees at their poultry processing plants, violating federal antitrust laws. The case seeks to recover financial damages for the workers and prevent the companies from "continuing their conspiracy."
Pharmaceuticals
A verified stockholder derivative complaint was filed against certain officers and directors of Bausch Health Companies Inc. over breach of fiduciary duty, waste of corporate assets, unjust enrichment, contribution and indemnification and violations of law. Former CEO Michael Pearson allegedly engaged in an aggressive "roll-up" strategy to grow revenues through acquisitions and cut spending on research and development. The defendants also allegedly engaged in unsustainable and deceptive practices to maintain the company's artificially inflated stock price, exposing the company to substantial undisclosed risks, including lost sales, regulatory sanctions and reputational harm.
Restaurants
The New York City government sued Chipotle Mexican Grill Inc. for allegedly violating "nearly every aspect" of the city's Fair Workweek Law. The city accused the Mexican fast-food chain of not providing good faith estimates of work schedules and failing to get consent and pay premiums for last-minute schedule changes. The company also allegedly failed to offer newly available shifts to current employees and implemented an illegal sick leave policy.
Retail REIT
A shareholder derivative action was filed against certain board members, former directors and a current officer of CBL & Associates Properties Inc. over breach of fiduciary duty, corporate waste, unjust enrichment, and federal securities law violations. The defendants allegedly caused the company to engage in an unlawful scheme to artificially inflate the trading price of the company's shares through materially false and misleading statements and omissions about its tenant reimbursements, revenues and net income. The defendants also reportedly deceived small business owners leasing mall space from the company by overcharging electricity costs.
