Achyut Phadke and Michael Wei Pen Article on Short-Seller Reports in Securities Litigation

Munger, Tolles & Olson partner Achyut Phadke and associate Michael Wei authored an article titled “Event-Driven Securities Litigation: Preparing for Lawsuits Based on Activist Short-Seller Reports,” published by the American Bar Association.

In the article, Achyut and Michael discuss the growing influence of activist short-seller reports in securities fraud class actions and provide valuable guidance for inside and outside counsel advising companies faced with short-seller reports.

In recent years, securities class action plaintiffs have increasingly relied on short-seller reports to support their allegations of corporate fraud and inaccurate financial statements. Achyut and Michael’s article examines recent district court decisions in the U.S. Court of Appeals for the Ninth Circuit, offering a comprehensive analysis of how courts handle these reports at the pleadings stage. The article also highlights key factors that courts consider when evaluating the credibility of short-seller reports and their impact on securities fraud claims.

Read the full American Bar Association article. (Subscription may be required)