Cadwalader Secures Major Win in Securities Class Action

Cadwalader has secured the dismissal of a securities class action lawsuit against Jing (Angela) Shan, the former Chief Operating Officer of Singularity Future Technology Ltd., a NASDAQ-listed global logistics company, in an opinion announced on December 17.

The suit was filed in the U.S. District Court for the Eastern District of New York on behalf of investors who purchased Singularity securities between February 2021 and November 2022, a period when the company announced its plans to expand from traditional logistics services into cryptocurrency mining equipment.

The class action asserted Section 10(b) claims and Section 20(a) claims against Ms. Shan and other defendants, seeking to hold her liable for alleged misstatements and omissions made throughout the duration of the class period related to the company’s capabilities and transition. 

As detailed in the decision, the Honorable Brian Cogan recognized that the plaintiffs failed to meet the thresholds required to survive a motion to dismiss, noting their “unwieldy” complaint “borders on shotgun pleading” and failed to establish control person liability for Ms. Shan. When reviewing the claims, the court went on to note that Singularity’s plans to expand into crypto mining were forward-looking statements protected by the PSLRA’s safe harbor, noting that the plaintiffs’ allegations are “completely devoid of any facts about [Ms. Shan’s] state[] of mind while the statements were made.” While certain of the plaintiffs’ 10(b) claims against Singularity and other individual defendants remain, the court dismissed all claims against Ms. Shan, thereby completely removing her as a defendant in this litigation. Cadwalader has the right to seek its attorney fees from plaintiffs, which it will pursue.

The Cadwalader team was led by Global Litigation partner Phara Guberman and includes partner and practice co-chair Nicholas Gravante and associates Jayshree Balakrishnan and Max Blender.