Bracing for More Bad News: How Public Companies Can Manage Risk After a Stock Price Drop

November 18, 2015

Program Description

The plaintiffs’ bar continues to target public companies with securities lawsuits filed in the wake of a stock price drop. Notably, securities fraud filings in the Ninth Circuit, which includes California, nearly doubled during the first half of 2015 as compared to the second half of 2014. The basic allegation in these cases is well worn, that the company’s stock price fell in response to the revelation of some “bad news” that allegedly should have been disclosed earlier.

Please join business and securities litigation partner Anne Johnson Palmer as they review the strategies that public companies can take to best position themselves for the litigation that can inevitably follow a sudden and significant drop in stock price. Topics that will be discussed include:

  • Recent data on the frequency of securities litigation filings, including the magnitude of stock price drops that garner complaints
  • Assessing exposure – what are the potential damages, and how do they correlate to potential settlement values
  • What plaintiffs’ firms consider in deciding whether to file a complaint
  • What to do when a complaint arrives, including steps to take to mitigate risk and proactively position the company going forward

1.0 hours MCLE provided

Ropes & Gray is an accredited CLE provider in the States of CA, NY and IL. This program offers approximately 1.0 CA general credits, 1.0 NY general credits, and 1.0 IL general credits **Programs are only eligible for CLE credit in Illinois if at least five people are in attendance.

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