First Dismissal of Coronavirus-Related Securities Class Action Lawsuit Came This Week

Since March 2020 plaintiffs’ lawyers’ have filed over two dozen coronavirus-related securities class action lawsuits, but even as the plaintiffs’ lawyers appeared ready to pursue these types of claims, the question has remained about how these lawsuits will fare according to a report in the D&O Diary.

In his January 25, 2021 Order, Judge Klausner granted the defendants’ motion to dismiss. In granting the motion, the judge held that the allegedly misleading statements with respect to Velocity’s underwriting practices were not actionable because there are mere “puffery.”