Law360: Chinese Co-Living Co. Couldn't Know COVID Risk, Judge Says

In “Chinese Co-Living Co. Couldn't Know COVID Risk, Judge Says,” Law 360 discusses U.S. District Judge Paul A. Cotty’s dismissal of claims with prejudice against firm client, co-living company Phoenix Tree, permanently dismissing the proposed securities class action against it.

Judge Cotty concluded that, “… the risk of COVID-19 was neither known now knowable to Phoenix Tree by the start of the IPO … and that it is therefore only with hindsight that plaintiffs can allege that Phoenix Tree failed to discuss the possibility that a few dozen cases of a respiratory illness would explode into a ruinous pandemic."

The case is Wandel v. Gao et al., case number 1:20-cv-03259, in the U.S. District Court for the Southern District of New York.

Michael J. Maloney represented the defendants in this matter.

 

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