Law360 Reports on Olshan Client’s Petition to Supreme Court to Review Short-Swing Trading Case

Law360 (subscription required) has reported on the petition for certiorari filed by Olshan client Raging Capital Management LLC, who is asking the United States Supreme Court to address "significant and recurring issues" that allowed a 1-800-Flowers.com shareholder to proceed with his derivative lawsuit despite failing to prove that the company was harmed in any way by the fund's alleged short-swing trades. The case, brought derivatively on behalf of 1-800-Flowers.com by shareholder Brad Packer, accuses Raging Capital of engaging in short-swing trading while holding 10% or more of the company's stock, which would make it a corporate insider under Section 16(b) of the Securities Exchange Act of 1934. Raging Capital asserts that Packer has not shown any concrete injury from the alleged statutory violation, as required under the high court’s 2021 ruling in TransUnion LLC v. Ramirez, because the latter has not demonstrated that the company lost anything of value from the fund's short-swing trades. Olshan litigation partner Thomas Fleming and associates Natasha Menell and Daniel Stone represent Raging Capital in this matter.