(Excerpts from this story were originally published in Law360)
After nine months of securities litigation that targeted the travel, pharmaceutical and other industries hardest-hit by COVID-19, the next wave of pandemic-tied filings is building as the economy pushes into winter.
The early stages of the pandemic brought wide speculation about possible investor litigation over the virus' impact on businesses, in light of historical trends showing securities cases tend to surge around crises and stock market turbulence.
The speculation was well-founded, though the level of filings, tied to COVID-19 or otherwise, hasn't yet soared to the degree it did following the dot-com crash of 2001 or the 2007-08 global financial crisis.
Speaking to Law360, Sean Baldwin explained that part of that can be attributed to the stock market's record rebound over the course of the year, as well as government bailouts that came to the aid of struggling industries. Baldwin also predicted that "if things change in the market or Congress fails to provide relief," the factors that may have quelled securities litigation in the early stages of the crisis could subside.
Read the full story in Law360.