By John R. Byrne
Securities lawsuits can sometimes be dry. Not this one. In Jastram v. NextEra Energy, Inc., the plaintiffs' class action complaint contained some fairly unusual (and Pelican Brief-esque allegations)--a utility company allegedly bankrolling ghost political candidates, surveilling reporters, and buying influence in local media. Though the utility company (NextEra Energy, Inc.) initially denied the allegations, its leadership later, according to the Eleventh Circuit, "began to backpedal." On Jan. 25, 2023, the company filed unscheduled disclosures and abruptly parted with its CEO. The same day? The company's stock plunged 8.7 percent, wiping out $14 billion-plus in market cap. Taken together, the Court said, the complaint's allegations were enough to plead loss causation.
If you handle securities cases, this is a must-read. Opinion here.
The key to this is the word “IF” (*yawn*)
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