Tracking COVID-related securities litigation

Tracking COVID-related securities litigation: 4 reasons cases may be on the rise

When COVID-19 hit in March 2020, many in the insurance industry anticipated a wave of litigation that would mirror the influx of lawsuits after the 2008 recession. During that year, investors trying to recuperate lost funds filed more than 200 new cases, increasing securities litigation by nearly 20 percent from 2007. So far, however, this prediction has not played out—at least not yet.

Courts have experienced a slowdown in securities-related lawsuits since the beginning of the pandemic, with only 29 cases filed since the initial shutdown. But some experts believe a surge of COVID-19-related litigation is on the horizon. In this article, we’ll explore what we know based on the COVID-19 securities cases that have been filed so far, and why there could be a rise in legal activity and related directors and officers (D&O) claims. 

COVID-19 securities litigation: what we know so far

Unlike other events that precipitate stock market crashes, the pandemic has had a unique impact on the economic and legal landscape—in large part because it’s unlike any other financial crisis we’ve experienced. Despite the uniqueness of the situation, however, it’s possible to identify several reasons why the pandemic hasn’t sparked the same rise in securities litigation that we saw in 2008.

Importantly, this time the government quickly provided aid to help offset the pandemic’s impact on the stock market. On top of that, many companies went above and beyond to share information with stakeholders following the Securities and Exchange Commission’s (SEC) guidance from April 2020 to “disclose as much information as is practicable regarding [your company’s] financial and operating status(…).” These factors, plus the widespread belief that COVID-19 was just a temporary setback, likely kept many investors out of the courtroom.

Even with the litigation slowdown, however, there are a few cases currently working their way through the courts. The following is a breakdown of the three main types of COVID-19-related securities lawsuits experts have observed so far.

  • Outbreak-related cases

A few cases have been filed against companies that experienced outbreaks in their facilities. For example, some cruise-ship companies, prisons, and long-term care facilities are facing securities litigation.

  • Cases against false financial claims 

Companies that claimed to be able to profit from the pandemic are also facing litigation. For example, shareholders at some vaccine development companies recently sued over false claims around the development of a COVID-19 vaccine. 

  • Cases in heavily impacted industries

Finally, shareholders with investments in companies most disrupted by the pandemic have started to file suits. Heavily impacted industries include real estate investment trusts (REITs) and businesses in the entertainment and travel industries.

4 areas of uncertainty around post-pandemic securities litigation

With so few cases in court today, why could there be a rise in COVID-19-related securities litigation and D&O claims? Here, we review four factors that could make an impact.

1. The nature of the stock market

Since March 2020, the stock market has been volatile, and it will likely continue that pattern for months, or even years. Because of this, reductions in stock prices will take time to develop. Many shareholders may wait until the market levels off to litigate to have a clearer picture of the long-term impact 

2. Stricter regulations from the SEC

According to news outlets, the new administration is signaling a tougher regulatory stance than its predecessor. If the SEC tightens restrictions and enforces stricter disclosures for publicly held companies, this may benefit future plaintiffs.

3. A lack of comparable cases and precedent

As noted above, there have only been a few securities lawsuits to date around COVID-19 losses, and most of the cases are still working their way through the court system. Without precedent to use as a guide, only time will tell if cases survive motions to dismiss and the percentage that is in favor of plaintiffs. If more plaintiffs pursue cases and are successful, it could whet the appetite for more suits.

4. Continued economic uncertainty

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How to Protect Your Brain Health Now

The pandemic can be hard on your memory, too. Here, from a new report, are tips for building resiliency

by Hallie Levine,  AARP, March 8, 2021 | Brain Health

“While a COVID-19 infection itself can directly harm your brain, months of isolation can take a toll as well,” says Sarah Lenz Lock, executive director of the Global Council on Brain Health (GCBH), an independent collaborative of scientists, doctors, and policy experts convened by AARP to provide trusted information on brain health. That’s why the council has released a report on how the brain health of older adults has been affected by the pandemic and what research is needed to address the problem. Along with the latest scientific findings, the report includes tips for older adults to adopt.

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Insurance Companies respond to Covid

Shield Insurance Blog | Covid |

There is a wealth of information in this article and too much to post, but please check it out as the Health Insurance Companies are listed A-Z and each one explains HOW they are responding to the Covid Crisis.

Insurance Companies response to Covid

The health and well-being of millions of Americans remain our highest priority. Health insurance providers are committed to helping prevent the spread of COVID-19. We are activating emergency plans to ensure that Americans have access to the prevention, testing, and treatment needed to handle the current situation.

Here are some ways health insurance providers are taking action:

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How to Stay Creative During Lock-Down

How to stay creative and keep your family sane during lock-down – from one of the world’s best teachers

  • The UN estimates that 1.25 billion children are currently at home as a result of the coronavirus lockdown.
  • British art and textiles teacher Andria Zafirakou won the 2018 Global Teacher Prize and has two teenage daughters.
  • Here she gives some practical tips – from giving your children time to transition to homeschooling, to creative ideas – for navigating staying at home together.
  • This article is part of a series from the World Economic Forum’s Cultural Leaders on building resilience in the pandemic.

In millions of homes across the globe this very minute, parents are juggling like never before as they struggle to stay creative and teach their children while earning a living during the coronavirus lockdown.

As of 20 March, the UN estimates that school’s out for 1.25 billion children and young people, as 124 countries have closed pre-primary to higher-education institutions – impacting almost three-quarters of all enrolled learners.

With their normal weekday routines gone, many of those children will be finding it hard to suddenly have mum and dad as teachers – and many parents will be trying to control the urge not to scream at them.

If that sounds like you, take some comfort in the knowledge that even one of the world’s best teachers admits her own kids aren’t keen on being “taught” by her.

Andria Zafirakou, Teacher, Arts and Textile, Alperton Community School, United Kingdom, speaking during the Session

Andria Zafirakou was awarded the Global Teacher Prize in 2018 and is a World Economic Forum Cultural Leader.

“Even teachers will say their hardest students are their own children,” says British teacher Andria Zafirakou, the 2018 winner of the Global Teacher Prize and a World Economic Forum cultural leader.

“It’s quite tough teaching your own kids because they won’t listen to you, and you have no tolerance or patience. So rest assured, we’re with you!”

The coronavirus is keeping millions of children out of school.

Before schools closed in the UK on 20 March, Zakirafou was teaching art and textiles in person to her students at Alperton Community School in northwest London, where she’s also the Associate Deputy Headteacher. In addition, she runs Artists in Residence, which brings artists into schools to inspire children and young people to seek a career in creative and cultural industries.

Now she’s at home with her husband and setting work for her two teenage daughters – as well as setting remote work for her students, who range from ages 11 to 18 and come from diverse, often poor, backgrounds.

Here are her tips on how to stay creative and keep your family sane when you’re all at home together.

We’re all having to stay creative

I’m finding it really tough not going into school because your classroom is your learning environment and your work environment. It’s hard not having that human contact with the children and picking up on things. And I can’t just go to the stock cupboard, so I have to think about what the students have at home, what access to materials they have and try to create lessons based on that.

I know that not every household has got access to paints, so I’ve been doing collage and lots of drawing activities. I’m really mindful that I want them to be creative and doing things away from the screen. I want them out in the garden, if they have one, to draw what’s there. So it’s about how I can get them to remain creative in their own environments.

Asking questions:

Asking Questions: Creativity is all about questioning: How can I? Why should it? What would happen if? How can I make this, or how can I change this? It’s about making sure that children are always being asked those questions.

Keeping everything: Do not chuck anything away. Keep a bag with all the egg boxes and toilet rolls in a corner, because that’s going to be a mine of incredible craft-making materials.

Setting challenges: What kind of musical instruments can you make today from what’s in the bags over there?

Giving them time: The beauty is that the parents are in control of the time, for once. So you can give your child two hours to get on with a wonderful creative task, and they wouldn’t have that in school.

Finding online resources: Use sharing resources like Twinkl, BBC Bitesize. And then there are the entrepreneurs, like Joe Wicks doing kids’ exercise classes. There are also artists and designers sharing resources.

Being creative with space: Think about the space in your house. What can you change, what room could be theirs? What space is not utilized? What can you get rid of to make them a work area or for their equipment? That’s a very easy thing to fix.

Thinking outside the paintbox: Creativity is not just about arts and crafts, it’s also about the kitchen. What kind of lunch can they make for you while you’re working?

Get creative together

Art can be so powerful because it makes you escape for a little bit, it puts you in that mindfulness zone, and time passes so quickly. You can actually reflect and say, ‘I did that and it looks good. As adults, if we are doing this ourselves, then we are showing good habits to our children.

So take time out of your busy, strange lives at the moment, by doing something like cooking, crochet, or coloring in with your children. That’s a fantastic thing to be doing together, and it will go such a long way.

Don’t worry about your children falling behind

We’ve really got to be kind to each other: we are in a huge transition and it’s extraordinarily difficult. I can sense the anxiety parents might have about children falling behind, but just make sure they do a little bit, often, so that they are still engaged in the daily routine of learning. And be kind to yourself: even if your child does not complete a worksheet, and you’ve had a really bad day with them, that’s OK. It’s not the end of the world.

The one really positive thing that will come out of this is, I’m hoping our young people can be more independent in choosing when and what to learn. If we create children that love learning, they will automatically be researching and trying to find new things to occupy their time with and to be inspired by.

Prepare younger ones for going back

The young people that we really need to work with are 7- to 14-year-olds. We’ve got to be quite careful to keep them inspired and interested – and prepare them for returning to school. A friend of mine has a child with ADHD. She’s worried her child may not want to go back to school, because being at home is quite comforting.

So when we eventually open up the schools, every school has got to be very careful in how they prepare children to come back. They’ll need to think about how every child has been affected by this.

Teach them life skills, too

The most important thing I’ve learned, which surprised me, is that now is a really good time to teach children things you want to be done. Not all lessons need to be academic – they can be life lessons we want our children to learn as well. Even how they should fold their clothes, mop-up, or vacuum. Stay creative Take an hour out and show them how you want them to do it. Usually, life is very fast, and we have no time for this type of teaching. But they are invaluable skills.

Carve out family time

In the evening, we have family time. So from 7.30 p.m. onwards, everyone’s devices go away, and we have a very fiery game of UNO or watch something appropriate on Netflix. Every household with children can now guarantee there’s going to be family time.

Let them chat to friends

It’s really important for the children to communicate with their friends. Parents can set up Zoom talks with their children’s friends. Not every day, but during the week, there should be some way they’re connected with somebody else that’s not you and not another adult.

Try and limit screen time

Lots of parents have contacted us to say they’re worried about children sitting in front of the computer for five hours a day. As a parent, I have printed out lots of worksheets, because young children like to work in their school books. So put parameters in place and try to manage how often they use their online learning resources.

This is where Alexa and all those gizmos are brilliant. Put a timer on for 15 minutes and then say, ‘You are doing those questions in 15 minutes. Help them with time management. And let’s get them reading books, drawing on toilet rolls, cooking, in the garden building things (if possible) – because they can’t be the generation that’s in front of screens learning, otherwise it will have a huge effect on them.

Share the responsibility

We need to jointly plan and give them that sense of responsibility. It’s quite powerful for them to take control of what they’d like to do. And if that’s being in their room drawing, then give them that time, make them exhausted from doing that, because they will get bored very soon. And when they want to do other things, that’s where, as a parent, you’ve already got all these resources and ideas ready to go.

Try not to lose it

There are going to be interesting, diverse scenarios taking place in homes at the moment. Don’t get frazzled, because teachers don’t lose it – they are quite calm. And just remember that your children are transitioning as well. We need to use lots of negotiation and give and take. Every parent is concerned because we’re taking up a new role here, which we’ve never had to do before. But it’s not going to be permanent. Stay creative there’s no quick fix, and you’re not a failure, because this is brand new to us all. The positive thing is, we’re going to get to know our children more.


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Priority Health Customers

Priority Health
Coronavirus (COVID-19) update

As Michigan continues to be impacted by this unpredictable illness, we want to remain a supportive partner by sharing important health care coverage updates.

Important COVID-19 coverage news
Your health plan will now fully cover your treatment of COVID-19 in addition to screening and testing.

Your plan already covers screening, whether in-person or virtual, at $0 if your doctor orders a COVID-19 test.If a doctor orders testing based upon your screening results, the test will also be administered at no cost to you.In the unfortunate event that you or a loved one on your health plan is diagnosed with this illness, your treatment of COVID-19 will be fully covered at 100%. We will waive all copays, deductibles, and coinsurance for inpatient and outpatient COVID-19 treatment from an in-network provider through June 30.*Remember, COVID-19 is extremely contagious, so please use virtual care as a first step if you are experiencing symptoms. Contact your primary care provider to ask about virtual care options or log in to your Priority Health member account for virtual care.

For a limited time get your prescriptions safely with free in-home delivery from Meijer, Walgreens and CVS
Our online member FAQs have the latest on prescription delivery, coverage details and more – all in one place.

Coverage options and other helpful resources
During these uncertain times, it’s more important than ever that you have coverage for health care. Whether you’ve lost your job, your employment status has changed, or you want to see if you qualify for financial assistance, you have options.See our updated COVID-19 resources and information page on these topics and much more.

We’ll stay in touch
Information and updates about COVID-19 are changing rapidly and it’s important to stay on top of things. So, we’ll share new information online as soon as it’s available.

Stay safe and well,
Your Priority Health team*This applies to employees of self-funded groups as well unless the employer chooses to opt out. Members on self-funded plans will see a SF on the backside/bottom left corner of their member ID card.
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