Welcome to A&O Shearman's Need-To-Know Litigation Weekly, which analyzes notable U.S. decisions, orders and developments each week in areas of Securities Litigation, Government/Regulatory Enforcement, M&A and Corporate Governance, Antitrust Litigation and IP Litigation. This weekly newsletter is intended to supplement our various publications and thought leadership concerning these important substantive areas.
Securities Litigation
Northern District Of California Holds Complaint Against Cybersecurity Company Fails To Allege Scienter For A Second Time
On October 2, 2025, Judge Haywood S. Gilliam Jr. of the United States District Court for the Northern District of California granted a motion to dismiss a putative securities class action against a cybersecurity company (the “Company”) and its CEO and former CFO (the “Individual Defendants” and, collectively, the “Defendants”). In re SentinelOne, Inc. Sec. Litig., No. 4:23-cv-02786 (N.D. Cal. Oct. 2, 2025). Read More
Northern District Of Georgia Largely Denies Uniform Rental Company’s Motion To Dismiss Securities Fraud Claims Arising From Post‑Spinoff Disclosures
On September 30, 2025, Judge Steven D. Grimberg of the United States District Court for the Northern District of Georgia substantially denied a motion to dismiss a putative securities class action arising out of the spinoff of a uniform-rental and workplace supplies company (the “Company”) from its former parent (the “Parent”). Plumbers, Pipefitters & Apprentices Loc. No. 112 Pension Fund v. Vestis Corp., No. 1:24-cv-02175-SDG (N.D. Ga. Sept. 30, 2025). Read More
Government/Regulatory Enforcement
Sixth Circuit Reaffirms Robust Privilege And Work-Product Protection For Internal Investigations In FirstEnergy Mandamus Ruling
On October 3, 2025, the United States Court of Appeals for the Sixth Circuit issued a decision granting FirstEnergy Corporation’s (“FirstEnergy”) petition for a writ of mandamus and vacating a district court order compelling production of materials created by outside counsel in the course of conducting two internal investigations. In re FirstEnergy Corp., No. 24-3654 (6th Cir. Oct. 3, 2025). Read More
SEC Restores Practice Of Considering Settlement Offers Conditioned On The Issuance Of Collateral Consequence Waivers
On September 26, 2025, Securities and Exchange Commission (“SEC” or the “Commission”) Chairman Paul Atkins issued a Statement on Simultaneous Commission Consideration of Settlement Offers and Related Requests (the “Public Statement”), announcing a significant policy reversal and return to prior practice.Read More
M&A and Corporate Governance
Delaware Court Of Chancery Finds Cancellation And Repurchase Of Shares Unauthorized For Failure To Adhere To Corporate Formalities
On September 9, 2025, Vice Chancellor J. Travis Laster of the Delaware Court of Chancery issued a post-trial decision in favor of plaintiffs with respect to a conversion claim in an action brought by two co-founders of a startup who alleged that defendants, two other co-founders, including the CEO, and the Company wrongfully deprived them of their shares. Foley v. Session Corp., C.A. No. 2023-0186-JTL (Del. Ch. Sept. 9, 2025).Read More
Delaware Chancery Court Grants Partial Judgment On Post-Acquisition Earnout Payments, Finding They Were Not Conditioned On Compliance With Other Provisions
On July 31, 2025, Vice Chancellor Lori W. Will of the Delaware Court of Chancery granted partial judgment on the pleadings on a breach of contract counterclaim asserted by defendant, the former majority owner of two intellectual property insurance underwriting companies that were sold to a risk management company (the “Buyer”), in his individual capacity and also as the representative of the sellers (the “Sellers’ Representative”) in a post-acquisition dispute.Read More
Antitrust Litigation
Southern District Of Indiana Grants Motion To Dismiss Sherman Act Claims In Pet-Retail Antitrust Case
On October 7, 2025, Judge James Patrick Hanlon of the United States District Court for the Southern District of Indiana granted in part and denied in part a brand name manufacturer of topical flea-and-tick products’ (the “Company” or defendant) motion to dismiss relating to defendant’s alleged “no generics” agreements with major pet specialty retailers. Spradlin v. Elanco Animal Health, Inc. No. 1:24-cv-01299 (S.D. Ind. Oct. 07, 2025).Read More
Dentists Denied Class Certification In Delta Dental Antitrust Lawsuit
On September 22, 2025, United States District Judge Elaine E. Bucklo of the Northern District of Illinois denied class certification to a putative class of approximately 240,000 dentists that alleged Delta Dental, a nationwide provider of commercial dental insurance, conspired to suppress provider reimbursement rates in violation of Section 1 of the Sherman Act. In re Delta Dental Antitrust Litig., 1:19-cv-06734, MDL 2931 (N.D. Ill. Sept. 22, 2025). Read More
Intellectual Property Litigation
USPTO Proposes PTAB Rule Revisions To Curb Serial And Parallel Challenges, Bolster Patent Reliability
The United States Patent and Trademark Office has proposed a significant overhaul of its rules for instituting inter partes reviews (IPRs) at the Patent Trial and Appeal Board (PTAB).Read More
Federal Circuit Affirms JMOL Of No Damages In Surgical Stapler Patent Dispute
On October 2, 2025, the United States Court of Appeals for the Federal Circuit (Judges Dyk, Prost, and Stoll) (“Federal Circuit”) affirmed the District of Delaware’s judgment in a patent infringement action holding that Rex Medical, L.P. (“Rex”) failed to present sufficient, reliable evidence to support any damages.Read More