The Federal Securities Case Against View Inc. Could be Halted

The back-and-forth in the case against View Inc., for allegedly violating federal security law continues. Sweta Sonthalia, the lead plaintiff movant, has submitted a Motion for Stay of Proceedings Pending Disposition— which is a ruling to suspend a proceeding or trial. Stadium Capital, a financial services company, has submitted an opposition to this motion.

The submission comes after Judge Beth Freeman appointed Stadium Capital LLC as the case’s lead plaintiff. Stadium Capital and Sonthalia had disputed who the presumptive lead plaintiff should be since they calculated their losses in different ways, according to court documents. Freeman ultimately named Stadium Capital the lead.

According to its opposition documents, Stadium Capital says that “after losing a bid to have this Court grant reconsideration and appoint Sonthalia as the lead plaintiff, [she] now files a Motion to Stay to delay the… securities class action. The stay is sought ostensibly to permit Sonthalia time to obtain an order from the Ninth Circuit Court of Appeals vacating the Court’s well-reasoned decision appointing, and subsequent decision reaffirming, Stadium Capital as the lead plaintiff.”

The motion says Sonthalia’s reasoning for submission is “because the Court’s Lead Plaintiff Order and its Order denying leave to reconsider … are currently the subject of the Mandamus Petition.” If the petition is granted, the Ninth Circuit would find that Freeman shouldn’t have appointed Stadium as the lead.

“Alternatively, the Ninth Circuit could resolve inconsistent case law and adopt a separate methodology, and this Court would have to reassess the movants’ applications for appointment as lead plaintiff. Accordingly, until the Ninth Circuit has adjudicated the legal propriety of Stadium’s appointment, Ms. Sonthalia respectfully submits that it would
be improper and inefficient for this putative class action to proceed under Stadium’s leadership,” the motion for stay continues.

In March 2021, View announced the completion of its business combination with CF Finance Acquisition Corp. II, and was named the surviving public entity. View was then listed on the Nasdaq Stock Market, and according to court documents, “On August 16, 2021, after the market closed, View announced that it ‘began an independent investigation concerning the adequacy of the company’s previously disclosed warranty accrual.’ On this news, [View’s] share price fell $1.26, or more than 24%, to close at $3.92 per share on August 17, 2021, on unusually heavy trading volume.”

According to the court’s docket, a Motion Hearing is scheduled for June 16. Replies to Stadium’s opposition were due by April 7.

DOL to Hire 100 Investigators to Support its Wage and Hour Division’s Compliance Efforts

In early February, the U.S. Department of Labor (DOL) announced that its Wage and Hour Division would hire 100 investigators to its team. It aims to strengthen support of enforcement efforts, including the protection of workers’ wages, migrant and seasonal workers, rights to family and medical leave and prevailing wage requirements for workers on federal contracts.

The announcement was made before the construction industry balked at an executive order requiring “project labor agreements” for federal construction projects of more than $35 million.

“Adding 100 investigators to our team is an important step in the right direction,” said acting Wage and Hour administrator Jessica Looman. “We anticipate significantly more hiring activity later in fiscal year 2022. While appropriations will determine our course of action, we are optimistic we will be able to bring new talented professionals on board to expand our diverse team.”

In fiscal year 2021, the Wage and Hour Division collected $230 million in wages owed to 190,000 workers. Division representatives also conducted 4,700 outreach events to educate employers and workers alike about their workplace rights and responsibilities.

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