Sign up for more with a complimentary subscription to Today’s General Counsel magazine.
Securities Lawsuit Targeting Stanley Black & Decker Cites “Macro Factors”
April 7, 2023
A securities lawsuit targeting Stanley Black & Decker, a U.S.-based tool manufacturer said to be worth more than $11 billion, is an interesting example of a late twist in Covid-related securities class actions, says Kevin LaCroix on his D&O Diary. But, he adds, it’s arguably even more interesting as an example of how disruptive “macro factors” – in this case the rise and then ebb of the pandemic, as well as a spike in interest rates and inflation – can spawn securities litigation in ways that can catch a company off guard. Plaintiff allegations include that the company knew but did not disclose that the DIY craze, which had been fueled by pandemic stay-at-homes, had petered out, and that its business was taking a hit from inflation and rising interest rates. LaCroix says this case – among others that he cites – suggests macro factors are starting to have a significant impact on securities litigation and are likely to continue to do so in the near future.
Share this post: