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Paul, Weiss is widely recognized as having one of the nation’s preeminent securities litigation and regulatory practices. For two decades, our lawyers have guided global corporations and financial institutions through a series of “bet-the-company” securities-related crises, consistently reducing or eliminating their most damaging claims and negotiating favorable resolutions.
Underwriter Syndicate Wins Dismissal of Securities Class Action Relating to COVID-19 Disclosures
- Client News
- September 30, 2022
Paul, Weiss won the dismissal of a putative class action in the Eastern District of New York arising out of the January 2020 IPO of Lizhi Inc., a Chinese social audio platform. Paul, Weiss represented the underwriters of the IPO, led by Citigroup Global Markets Inc.
The plaintiff asserted claims under the Securities Act of 1933 and alleged that the defendants made materials misstatements and omissions in the IPO offering materials by failing to disclose the likely impact of COVID-19 on the issuer’s finances and operations. In her decision dismissing the complaint, Judge DeArcy Hall held that COVID-19 was not a known trend at the time of the January 2020 IPO, and that the plaintiff had failed to plausibly plead that the defendants had “actual knowledge” that COVID-19 would impact the company’s operations or revenue.