Tales of Litigation Impacting Federal Securities Shareholders’ Disputes

ABSTRACT Shareholder class action lawsuits can result in protracted legal actions that are costly to firms. This article explores four crucial topics of financial disclosure litigation by presenting four cases. First, we explore forward-looking statements in the case against Enphase Energy. We then present two 2024 U.S. Supreme Court rulings, the case of Macquarie Infrastructure regarding omissions and the case of Mr. Jarkesy regarding the right to a jury trial. Lastly, we discuss the post-dismissal settlement in the case of Under Armour. By laying out these cases, this paper presents some key components of the shareholder disclosure litigation landscape. Forensic accounting consultants and expert witnesses, lawyers, and finance professionals must understand disclosure requirements and omission opportunities to minimize litigation risk, to understand gaps in disclosures, and to help lawyers in litigation support engagements. JEL Classifications: G1; K2; K3.