L&K Insights

In the wake of the special purpose acquisition company (“SPAC”) fad that recently gripped the financial world, the passage of time has shown that many, or even most, of these companies were ultimately value destructive for public investors.[1] In response, stockholders have pursued class actions alleging breaches of fiduciary duties by SPAC insiders, and the Delaware...

Ninth Circuit Holds Former Employee Statements Can Be Probative of Scienter in 10b-5 Actions at the Pleading Stage Even Where the Former Employee Departed the Company Before the Class Period Began or Had No Direct Contact With a Defendant Whether allegations in a complaint raise a strong inference of scienter is one of the most...

In a meaningful victory for shareholders, Levi & Korsinsky attorneys recently defeated two motions to dismiss a securities fraud class action brought on behalf of investors who purchased common stock issued in Stronghold Digital Mining, Inc.’s IPO.[1] Stronghold is pending in the United States District Court for the Southern District of New York before United...