A lot has happened in the last few months because of the pandemic. Companies fighting on the front lines of COVID-19 are at risk of scrutiny and litigation, especially when making statements in media interviews, press releases, and public disclosures.
The same applies to businesses that have been impacted heavily by the pandemic, whether positively or negatively. Companies need to ensure they disclose COVID-19-related news and forecasts only after careful legal and strategic consideration.
A Recent Securities Litigation Case Related to COVID-19
Inovio Pharmaceuticals Accused of Overly Optimistic Statements
In mid-March 2020, the CEO of Inovio Pharmaceuticals claimed that they could produce a vaccine within three hours and planned to start trials in April that year. With this statement, Inovio’s stock prices surged. After this, an analyst called for an SEC investigation, calling the CEO’s claim “ludicrous.” Soon, Inovio Pharmaceuticals became the very first company sued for alleged COVID-related securities violations. As a result, Inovio’s stock dropped from $18.72 to $5.70 within two days.
Since, several then, several other securities class action cases have emerged, focusing on companies directly involved in COVID-19 or whose business operations were affected by the pandemic.
The Closed Doors of the Courts
The most significant change in any litigation lawyer’s professional life caused by COVID-19 was the courts’ unprecedented closure. The courts adjourned almost all litigation cases scheduled including criminal proceedings, and all civil matters scheduled for March to June were adjourned without confirmed return dates.
These changes significantly affected litigants, especially those unable to resolve their disputes through negotiation and waiting for a trialto move cases forward. The cases that proceeded to to full trial were only a small fraction of all civil cases.
Meanwhile, several cases remained pending for trial, and many parties had no other choice. As a result, many lawyers struggled to retain clients because of litigation delays.
Meetings While Maintaining Social Distancing
Lawyers met their clients face-to-face for the last time in March. After that, physical meetings were restricted by the government for public safety, and social distancing became the new normal. Lawyers began communicating with clients virtually via email, phone calls, or online meetings.
In personal injury litigation cases, injured clients typically attend medical assessments frequently. During the time between mid-March and June, in-person assessments were postponed because litigation-related medical assessments are not counted as an essential service. Due to this, there has was a considerable delay in documentation, preparation of files, and the entire case, making case progress difficult until the social distancing restrictions were lifted.
Changes in Litigation Operations & Culture of Law Offices and Courts
As soon as restrictions were imposed, many lawyers and law firms decided to work remotely like many other professional sectors.
Lawyers and their paralegals began digitizing documents, including, letters, legal filings, briefs, photos, etc. This allowed them to access essential documents any time as needed using a secure network connection.
Read: What Steps Your Law Firm will Take After Covid-19 for Firm’s Growth?
Similarly, the exchange of documents in digital format made it easier for clients to scan and send files from home. Communication barriers were reduced by routing voicemail messages directly to the intended lawyer.
The increasing utilization of virtual meeting platforms such as Zoom, Webex Meetings, and GoToMeeting supported lawyers by improving communication between colleagues and clients. For example, lawyers from different offices could collaborate seamlessly through online meetings.
Besides, courts across the country adapted very quickly. They allowed secure portals that enabled court staff to issue a statement of claim or file a statement of defense virtually. This eliminated the need for lawyers and clients to physically appear at the court counter for standard filings.
Conclusion
When the first nationwide lockdown was imposed, several legal proceedings, mediations, and examinations of discovery were postponed ~~ /rescheduled~~ or rescheduled. However, the entire legal profession adapted very quickly to develop suitable solutions to overcome these challenges.
Soon, the legal system allowed virtual discovery proceedings, by late April, in which the defense lawyer, client, and the court reporter participated remotely while working from home. This greatly helped boost court proceedings and provided some relief to clients waiting for progress in their cases.
Mediators also quickly adapted to virtual platforms and hosted mediated settlement meetings digitally, with all parties present online.
The solutions that lawyers and courts found to tackle the pandemic’s challenges were remarkably effective, and soon, delayed and postponed litigation cases proceeded further. However, during this shift, lawyers’ workloads increased immensely. Now, they have more clients wanting virtual consultations, leaving them with less time to perform substantive legal work.
In this situation, Legal Support World, a litigation support company, can help lawyers manage administrative and litigation tasks efficiently and cost-effectively. We have been offering quality legal support services across the US since 2008 and have earned several clients who are happy and satisfied with our litigation services. Visit our website to learn more, or call us to get a free trial. Call us at +1 914 863 9894 or email at us at info@legalsupportworld.com
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