On February 25, 2025, Skadden secured a complete dismissal on behalf of Lightspeed Commerce Inc. and certain of its executives against a putative securities class action in the U.S. District Court for the Eastern District of New York. The plaintiff based their securities fraud and control person claims almost entirely on the contents of a report issued by Spruce Point Capital Management detailing certain of Lightspeed’s business and accounting practices. In granting dismissal, the court emphasized that the plaintiff had “pared back nearly all the allegations in his amended complaint” in response to Skadden’s motion to dismiss and failed to create a new theory of liability. Similarly, the court rejected the plaintiff’s theory that Lightspeed misrepresented its customer-base growth and its motivations for various corporate acquisitions. Alexander Drylewski led the Skadden team.
by Rohin Pujari
