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March 11, 2026
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On February 9, 2026, in Williams v. Caption Mgt., LLC, et. al, the United States District Court for the Southern District of New York granted a motion to dismiss made by the firm on behalf of its client, Clarus Corp., named as a nominal defendant. The action was brought by a Clarus shareholder for disgorgement of short-swing profits under Section 16(b) of the Securities Exchange Act of 1934, as amended. The Court held that the shareholder lawsuit was duplicative of an identical lawsuit brought by Clarus for the same relief. Even though the shareholder’s action was filed first, the Court found that an exception to the first-filed rule was warranted.
The Michael Best litigation team consisted of Jeffrey H. Daichman and Daniel D. Madison.
