United States: New York Appellate Court Reverses Denial Of Motion To Dismiss Securities Act Claim And Dismisses Complaint Against Chinese E-Commerce Company Alleging Material Omissions – Shearman & Sterling LLP

On December 3, 2020, the Appellate Division of the New York Supreme Court, First Judicial Department, reversed an order that denied defendants’ motion to dismiss a securities action complaint against a Chinese e-commerce marketing company (the ࢀœCompanyࢀ) under Section 11 of the Securities Act of 1933, and directed that a judgment be entered dismissing the complaint. Lyu v. Ruhnn Holdings Ltd. , No. 12553, 2020 WL 7062118 (1st Dep’t Dec. 3, 2020). This is the first substantive Securities Act ruling from a New York appeals court since the United States Supreme Court’s decision in Cyan Inc. v. Beaver County Employees…