I've been consulting lately with some investment fund managers about event driven litigation, so I noted with interest Kevin LaCroix's post on the topic.
He begins by noting that this is a topic on which he has opined before and that others have also addressed it recently:
Among others, the Bloomberg columnist Matt Levine, in an article provocatively entitled, “Everything Everywhere is Securities Fraud” (here) also weighed in on the event-driven litigation trend.
There are, of course, usually two sides to every story, and in a April 5, 2023 Law360 article entitled “Why Event-Driven Securities Class Actions Often Succeed” (here, subscription required), David Barenbaum and Michael Dark of the Berman Tobacco firm provide a plaintiffs’ side view of event-driven securities litigation, and make out their case that these cases are not only not frivolous but provide securities investors important remedies and protections.
Mr. LaCroix goes on summarize the argument made by Barenbaum and Dark. He then offers what I think is a very reasoned and reasonable critique of their arguments. Recommended reading.
