L&K Insights

Overview In class action securities cases premised on misstatements and omissions made in connection with a company’s initial public offering, a complaint often alleges both claims arising under Section 11 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934. Claims arising under Section 11 do not require showing...

        On August 8, 2024, the 9th Circuit Court of Appeals issued its ruling in Max Royal LLC v. Atieva, Inc. (In re CCIV / LUCID Motors Sec. Litig.), 110 F.4th 1181 (9th Cir. 2024) (“Atieva”), which affirmed a lower court’s dismissal of securities fraud claims brought under §§10(b) and 20(a) of the Securities Exchange...

Delaware has long been the state of choice for companies seeking to attract investment because of its savvy judiciary and its stable, predictable, and fair corporate law. As a result of this status, more than 20% of the state’s tax revenue comes from corporate franchise fees. But if companies start to prefer incorporation in states...