A&O Shearman

Securities Litigation

District Of Massachusetts Dismisses Putative Securities Class Action Against Biopharmaceutical Company

On June 29, 2026, Judge Leo T. Sorokin of the United States District Court for the District of Massachusetts granted a motion to dismiss a putative securities class action against a clinical-stage biopharmaceutical company (the “Company”) and certain of its directors and officers, as well as the underwriters of its initial public offering, alleging violations of Sections 11 and 15 of the Securities Act of 1933. Nopphol Buathongsri v. Zenas Biopharma, Inc., et al., No. 25-10988 (D. Mass. June 29, 2026).
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Northern District of California Grants Motion To Dismiss Securities Class Action Against Payment Technology Company

On June 29, 2026, Judge Noël Wise of the United States District Court for the Northern District of California granted a motion to dismiss a putative securities fraud class action against a payment technology company (the “Company”) and certain of its current and former officers, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Beibei Cai v. Visa Inc., et al., No. 24-cv-08220 (N.D. Cal. June 29, 2026).
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Government/Regulatory Enforcement

Supreme Court Expands Presidential Control Over Independent Agencies

In a pair of rulings that will potentially reshape the regulatory landscape, the U.S. Supreme Court permitted the President to fire the heads of independent agencies—while carving out a notable exception for the Federal Reserve. On June 29, 2026, in Trump v. Slaughter, No. 25-332, the Supreme Court ruled 6-3 that the Federal Trade Commission’s “for-cause” removal provision violated the Constitution’s separation of powers.
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House Committee On Oversight And Government Reform Opens Prediction Markets Insider Trading Probe

On May 22, 2026, House Committee on Oversight and Government Reform (“Committee”) Chairman James Comer opened an investigation into how users of prediction market platforms potentially are using nonpublic information to engage in insider trading. Chairman Comer has requested documents and information to assess how the platforms verify the identities of domestic and foreign account holders, enforce geographic restrictions, and monitor suspicious trading activity to guard against insider trading.
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M&A and Corporate Governance

Delaware Court Of Chancery Dismisses Breach Of Fiduciary Duty Claims Related To Abandoned IPO and Subsequent Settlement Proceedings

On June 26, 2026, Chancellor Kathaleen St. J. McCormick of the Delaware Court of Chancery dismissed derivative claims against certain directors and stockholders on behalf of a biotech company (the “Company”) that had resolved litigation arising out of an abandoned IPO. David Rostov v. Alcon Research, LLC, et al., C.A. No. 2025-0648 (Del. Ch. June 26, 2026).
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Delaware Court Of Chancery Applies Section 144 Heightened Independence Presumption To Demand Futility

On June 15, 2026, Vice Chancellor Lori W. Will of the Delaware Court of Chancery granted in part and denied in part a motion to dismiss claims of breach of fiduciary duty and unjust enrichment in a stockholder derivative action challenging two board compensation decisions by a financial institution (the “Company”): a one-time $50 million equity grant to its founder and non-executive chairman, and the directors’ self-awarded compensation. Ayers v. Foley, No. 2025-0650-LWW, 2026 WL 1723538 (Del. Ch. June 15, 2026). Applying the recently amended 8 Del. C. § 144(d)(2), the Court dismissed the claims tied to the equity grant but sustained the claims arising out of director compensation.
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Antitrust Litigation

Biopharmaceutical Company Wins Summary Judgment On State AG Price-Fixing Claims

On June 23, 2026, the U.S. District Court for the District of Connecticut granted a large pharmaceutical company’s (“Company”) motion for summary judgment in a sprawling antitrust action brought by state antitrust enforcers against pharmaceutical drug manufacturers. The State of Connecticut v. Sandoz, Inc., et al., No. 3:20-cv-00802 (D. Conn. June 23, 2026). .
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Florida Judge Grants Motion to Dismiss Section 2 Monopolization Claim

On June 16, 2026, the United States District Court for the Southern District of Florida, Judge Roy K. Altman, granted in full a motion to dismiss a Miami-based boat brokerage’s monopolization allegations against the operator of the three largest online platforms that connect buyers and sellers of recreational boats in the United States. Plaintiff alleged that Defendant had unlawfully acquired, maintained, and expanded monopoly power in violation of Section 2 of the Sherman Act, the Florida Antitrust Act, and the Florida Deceptive and Unfair Trade Practices Act, seeking treble damages, injunctive relief, attorneys’ fees. The Court dismissed the two federal Section 2 counts without prejudice and declined to exercise supplemental jurisdiction over the three state-law counts. Plaintiff has until June 30, 2026, to file an amended complaint.
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Intellectual Property Litigation

Federal Circuit Affirms Preliminary Injunction Against Generic Nuedexta

In Otsuka America Pharmaceutical, Inc. v. Hetero Labs Limited, No. 2025-2016 (Fed. Cir. July 1, 2026), the U.S. Court of Appeals for the Federal Circuit affirmed a preliminary injunction barring Hetero Labs Limited (“Defendants-Appellants”) from launching a generic version of Nuedexta, a drug used to treat neurological disorders. .
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Federal Circuit Holds Pleading‑Level Knowledge Triggers DTSA Statute Of Limitations

On May 28, 2026, the United States Court of Appeals for the Federal Circuit reversed a judgment for plaintiff on trade secret misappropriation claims under the Defend Trade Secrets Act (“DTSA”) holding that plaintiff’s claims were untimely because the statute of limitations had expired before the lawsuit was filed. Insulet Corp. v. EOFlow, Co., No. 2025-1807, 2026 WL 1502238 (Fed. Cir. May 28, 2026).
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