August 27, 2019
Jason Halper comments on post-IPO, class action lawsuits, which are on the rise, and how tech-focused firms are finding themselves particularly prone to litigation at the hands of disappointed investors.
An excerpt from “For Tech Companies Going Public, An Unwanted Side Effect: IPO-Related Lawsuits,” Fortune, August 27, 2019:
“More companies that are either not profitable or barely profitable are going public, and that’s going to cause more volatility in the stock, particularly after it starts trading,” according to Jason Halper, chair of law firm Cadwalader’s global litigation group, which defends companies in class action securities lawsuits. “When you have a stock price drop and the financial performance is poor, that’s a plaintiff-friendly situation.”
To read the full Fortune article, click here.