A California federal judge rejected Zoom Video Communications, Inc.’s motion to dismiss securities fraud claims against it, and its CEO and CFO, for misrepresenting Zoom’s privacy protections. Although there have been a number of cases challenging inadequate privacy protections on consumer protection grounds in recent years, this decision shifts the spotlight to an additional front
Public Company Advisory
Stumbling Through Securities Law Challenges for COVID-19 Vaccine Developers
As the world waits to overcome the COVID-19 pandemic, publicly traded pharmaceutical companies waging in that fight are facing the multifaceted challenge of developing COVID-19 responses, informing the public of their progress, and managing legal challenges related to their efforts. Enter AstraZeneca.
AstraZeneca partnered with Oxford University to develop a COVID-19 vaccine in April 2020,…
Cakes Gone Bad: The Cheesecake Factory Faces Securities Scrutiny
COVID-related securities claims continue to rattle the marketplace. On December 7, a leading plaintiffs firm announced an investigation on behalf of shareholders of The Cheesecake Factory Inc., just days after the SEC announced it was settling charges against the company for making misleading disclosures about the impact of the COVID-19 pandemic on its business operations…
NYSE Takes Another Step to Facilitate Capital Raises In Light of Pandemic
On May 14, 2020, the New York Stock Exchange (the “NYSE”) adopted a temporary rule waiving until June 30, 2020 additional key shareholder approval requirements for certain private investments in public equity (“PIPE”) and similar transactions by companies impacted by COVID-19. The new waiver operates by creating a new “COVID-19 exception” to the so-called “20%…
Nasdaq Facilitates Quick Capital Raises In Light of Pandemic
On May 4, 2020, The Nasdaq Stock Market LLC (“Nasdaq”) adopted a temporary rule waiving until June 30, 2020 key shareholder approval requirements for certain private investments in public equity (“PIPE”) and similar transactions by companies impacted by COVID-19. The temporary waiver operates by creating a new “COVID-19 exception” to the so-called “20% rule” that…
Alternative Equity Offerings for Volatile Markets
Recent market conditions and volatility due to the COVID-19 pandemic have produced an environment in which traditional securities offerings may prove challenging for public companies. At the same time, the global economic fallout resulting from the pandemic and the efforts to contain it may make raising equity capital all the more imperative or strategically important…
Rescue and Recovery Capital – A Guide for Companies and Investors
In light of the significant liquidity challenges and deterioration in the stock prices and asset values the COVID-19 pandemic has caused for many otherwise healthy public companies, many of those same companies and investors are exploring rescue and recovery capital solutions that would not have been on their radar before. These solutions can involve a…
NYSE Facilitates Private Financing to Assist Public Companies through the COVID-19 Period
SEC Approves Temporary Waiver of NYSE Shareholder Approval Rules to Provide Companies Additional Flexibility to Raise PIPE Financing
On April 6, 2020, the Securities and Exchange Commission (the “SEC”) announced the approval and immediate effectiveness of a proposal from the New York Stock Exchange LLC (the “NYSE”) to temporarily waive certain shareholder approval requirements applicable…
UPDATE: SEC Expands Temporary Relief for Public Company Filing Deadlines
On March 25, 2020, the U.S. Securities and Exchange Commission (“SEC” or “Commission”) announced an Order to provide further extensions for public company filing deadlines due to the COVID-19 pandemic. This Order supersedes and extends the Commission’s original Order dated March 4, 2020. For additional information on the original Order, see our previous client alert…
Public Company Reporting in the Shadow of the Pandemic
As the COVID-19 virus disrupts businesses, public companies face both operational and compliance challenges as public disclosure has become a more complex and evolving task. Companies with calendar year-ends are beginning to prepare their quarterly reports on Form 10-Q, and companies with other fiscal year-ends may be preparing annual reports on Form 10-K, or on…