Pomerantz LLP

Daniel Summerfield contributed to Old Mutual's Tomorrow publication for 2024, where he explores "The Changing Dynamic of Shareholder-Corporate Engagement." In his article, Dr. Summerfield highlights a notable shift in how shareholders are engaging with corporations and how companies are increasingly being held accountable for their actions. In today’s ever-changing corporate governance and stewardship landscape, Dr. Summerfield posits that change has become the new normal, particularly regarding the ways investors are keeping companies accountable for climate change commitments and challenging corporate decision-making processes. Read more: https://lnkd.in/gtX-hDKa #CorporateGovernance #SustainableBusiness #ShareholderActivism #CorporateSustainability

In 2021, Emergent BioSolutions, a biopharmaceutical company, found itself at the center of a scandal that shook investor trust. With a Baltimore facility pre-certified to produce pandemic vaccines, Emergent signed over $1.5 billion in contracts with Johnson & Johnson, AstraZeneca, and the U.S. government to produce desperately needed bulk drug substance for COVID-19 vaccines at the height of the pandemic. Emergent's executives publicly assured investors of their readiness, touting their facility's ability to manufacture vaccines at commercial scale. However, in March 2021, media outlets including The New York Times reported that employees had mixed up ingredients, cross-contaminating millions of dose-equivalents of J&J’s vaccine with AstraZeneca material. These reports also detailed a broader history of quality control issues at the Baltimore plant, including contamination risks and inadequate employee training.?After Emergent’s executives denied that cross-contamination occurred and stated that only one batch of vaccine drug substance was discarded, Emergent’s stock cratered as more batches were destroyed, the government took operational control of the Baltimore facility away from Emergent, and COVID-19 vaccine production was ended.?A Congressional investigation revealed that 400 million dose-equivalents out of 500 million produced by Emergent were destroyed. Pomerantz pursued a securities class action against Emergent and certain of its executives, alleging that they misled investors by concealing significant manufacturing issues at its Baltimore facility during the Class Period, between March 10, 2020, and November 4, 2021. Emergent allegedly failed to disclose critical deficiencies identified by the FDA, including contamination risks, faulty equipment, and untrained personnel, which threatened its ability to meet vaccine production goals, while misrepresenting its facility’s readiness and, after the initial news reports, the scope of the problem. Pomerantz recently secured preliminary approval of a $40 million settlement for investors in Emergent BioSolutions, Inc. Led by Pomerantz Partner Matthew L. Tuccillo. This litigation highlights the critical importance of transparency and accountability in the biopharmaceutical industry, where investor trust and consumer safety are paramount. #COVID19VaccineCrisis #TransparencyMatters #CorporateMisconduct #InvestorProtection #SecuritiesLitigation #ClassAction

In the latest issue of The Pomerantz Monitor, Michael Grunfeld reports on the Supreme Court’s June 2024 decision in Loper Bright Enterprises v. Raimondo, which overturned the long-standing precedent set in Chevron v. Natural Resources Defense Council. For 40 years, Chevron had required courts to defer to administrative agencies' interpretations of ambiguous statutes, provided they were reasonable. In Loper Bright, the Supreme Court ruled that courts must now use their independent judgment in determining whether agencies acted within statutory authority. This decision curtails the authority of agencies such as the SEC and EPA, allowing more challenges to their interpretations of federal laws. Justice Elena Kagan’s dissent argued that the ruling disrupts the balance of regulatory authority and places too much decision-making power in the hands of the judiciary. In his article, Michael explores how this ruling reflects the Court’s broader trend of limiting administrative power and overturning precedents, with potential wide-ranging effects on regulatory law and governance. Read more at: [https://lnkd.in/eZV3xKea] #SupremeCourtDecision #RegulatoryLaw #LegalPrecedent #SecuritiesLitigation?

In 2022, Global Payments Inc. (GPN), a leading fintech company that provides payment processing solutions, became ensnared in a federal enforcement action brought by the Consumer Financial Protection Bureau (CFPB) against GPN’s subsidiary, Active Network. Active Network, which offers event registration and payment processing services, had allegedly been engaging in deceptive practices known as "dark patterns"—a term referring to user interface designs intended to manipulate or mislead consumers into taking actions they otherwise wouldn't, such as subscribing to unwanted services or paying hidden fees. Active’s dark patterns allegedly included misleading marketing, misrepresentations of benefits, and hidden fees to entice customers into joining and remaining enrolled in its discount club, thereby violating consumer protection laws. Pomerantz pursued a securities class action against Global Payments, alleging the company misled investors regarding its legal compliance and failed to disclose its subsidiary’s unlawful use of dark patterns. Despite Global Payments' alleged knowledge of these tactics, the company allegedly failed to halt its subsidiary's deceptive practices. Instead, according to the complaint in the matter, Global Payments made false public statements, emphasizing the integrity of its operations and the sustainability of its revenues, and bluntly stating that it was “currently in compliance with existing legal and regulatory requirements,” all while benefitting from Active Network's deceptive practices. Pomerantz’s investigation uncovered multiple former Active Network employees who alleged that these practices were well known within the company and that it received a deluge of complaints and refund requests from consumers. Defendants’ assurances of legal compliance continued until October 18, 2022 when the CFPB filed an action against Active Network for illegally imposing membership fees on consumers. Pomerantz’s complaint alleged that this caused GPN’s stock price to drop, injuring investors. Pomerantz recently achieved a $3.6 million settlement for investors in Global Payments, Inc., with the case being led by Pomerantz attorney and Of Counsel, Jonathan Park. This litigation underscores the serious impact of deceptive practices on consumer trust and investor confidence. #RegulatoryCompliance #ConsumerProtection #FinancialTransparency #SecuritiesLitigation #ClassAction

As a pioneering force in specialty pharmaceuticals, Mallinckrodt PLC strives to transform the lives of patients with chronic pain and rare diseases. Between June 2022 and August 2023, however, the company allegedly was less than truthful with investors in connection with its emergence from bankruptcy in connection with the company’s role in the U.S. opioid epidemic. Pomerantz recently overcame a motion to dismiss an investor lawsuit against Mallinckrodt PLC, alleging that the company’s executives made false statements about its financial health, claiming sufficient liquidity and the ability to meet obligations under its bankruptcy plan. According to the complaint, these assurances were misleading, as the company re-entered bankruptcy just over a year after emerging from its first, resulting in devastating losses for shareholders. In the wake of the company’s second bankruptcy, Pomerantz and its clients alleged that the Defendants’ descriptions of the Company’s financial condition were, at a minimum, misleading. Just months before the second bankruptcy filing, Mallinckrodt's stock price plummeted after the company disclosed that it would not make bond interest payments, triggering a 30% drop. Amid this turmoil, executives were protected from the financial fallout while shareholders faced the harsh reality of a collapsing investment. #PharmaceuticalIndustry #OpioidCrisis #CorporateAccountability #FinancialHealth #SecuritiesLitigation #ClassAction

In June 2024, Pomerantz held its Corporate Governance Roundtable outside the U.S. for the first time, drawing over 100 institutional investors and governance professionals to London for a day of discussion and insight. What began a decade ago as a small gathering of institutional investors has now grown into the firm’s flagship event. In the latest edition of the Pomerantz Monitor, the editors report on this year’s conference, which covered topics such as AI, greenwashing, and securities litigation, and featured a keynote speech by former British Prime Minister Sir Tony Blair. Pomerantz Partner and Head of Client Services?Jennifer Pafiti organized the event. #CorporateGovernance #AI #Greenwashing #InstitutionalInvestors #LegalConference #SecuritiesLitigation #London #GlobalInvesting

L’shana tova! Pomerantz wishes a happy Rosh Hashanah and a sweet new year to all who celebrate. #shanatova #chagsameach #applesandhoney

Lawdragon recently spoke to Pomerantz Partner Michael Wernke about some of his most significant legal victories, including the precedent-setting rulings he achieved in the Firm’s litigation against Teva Pharmaceuticals, his settlement in a case against Y-mAbs Therapeutics, and his advocacy for defrauded investors in the electric vehicle manufacturer Nikola in the wake of numerous alleged misrepresentations made by the company’s founder and former CEO Trevor Milton. Read the full interview on the Lawdragon website.

Pomerantz Partner Murielle Steven on the firm’s historic $70 million settlement with Wynn Resorts Ltd. Read more at https://lnkd.in/gt4thKX8 #ClassAction #Settlement #MeToo #SecuritiesLitigation

Pomerantz recently scored an important victory in its own neighborhood. Mainchance, a vital overnight drop-in center that has been serving New York City’s homeless population in Midtown Manhattan for 35 years, had been at risk of closure two years before the termination of its current contract. Working pro bono, Marc Gross, Pomerantz Senior Counsel and Mainchance Board Member, led the charge to stop the city from closing the center. Marc sought an injunction against the Department of Homeless Services, arguing that the proposed closure lacked any reasonable basis given Mainchance’s superior record of service, while questioning whether the closure decision may have had something to do with the luxury hotel next door, which is owned by Turkish interests (for which Mayor Adams has an alleged affinity). On September 19, 2024, NY Supreme Court Judge Lynn Kotler ruled in favor of Mainchance, thanks to the tireless efforts of Marc Gross and his powerhouse team — Stephanie Weaver, Simon Hall, and Taryn Sayre. This victory is yet another demonstration that Pomerantz not only litigates the law but also helps shape it. #CommunitySupport #ProBono #AdvocatingForChange #NeighborhoodImpact