Underwriting Syndicate Wins Dismissal of Investor Lawsuit Stemming From 2020 IPO

Representing the eight underwriters of the January 2020 IPO of Chinese social audio platform Lizhi, Inc., Paul, Weiss won the dismissal of an action brought in the New York State Supreme Court under the Securities Act of 1933. The plaintiff alleged that the underwriters failed to disclose the impact of COVID-19 on the company’s finances and operations when its registration statement was filed in mid-January 2020. In a two-page order, Justice Andrew Borrok dismissed the complaint without prejudice, explaining that COVID-19 “is not a shibboleth to asserting a claim” under the securities laws.

The Paul, Weiss team included litigation partner Susanna Buergel.