Stephen Blake

Stephen Blake, a partner at Simpson Thacher & Bartlett LLP, has earned recognition across California and nationally for his expertise in shareholder litigation and securities regulatory matters.

Over the past two years, Blake has notably secured dismissals of major class action suits, defended intricate shareholder lawsuits and investigations, and effectively litigated disputes.

A significant matter for Blake was his representation of JOYY, a global video-based social media company. In this case, he achieved the dismissal and appellate affirmance of a securities class action against JOYY and its officers.

The lawsuit, which was based on allegations from a short seller report, claimed that JOYY made false and misleading statements about its revenue and business model. Blake’s success in this case is particularly notable as it is believed to be the first federal circuit court decision to address the weight given to anonymous short-seller allegations in securities litigation.

In the JOYY case, Blake faced the challenge of addressing the reliability of the short seller report, which contained sweeping allegations but lacked substantiation.

“The plaintiffs, citing a short seller report, alleged that JOYY had failed to disclose that a significant portion of its users were allegedly bots,” he said.

By focusing on the report’s lack of reliability and the absence of factual support for its central thesis, Blake effectively dismantled the plaintiff’s claims. His strategic approach was validated when the Ninth Circuit affirmed the District Court’s judgment, agreeing that the short seller report lacked “indicia of reliability” and did not substantiate the allegations of falsity.

“This was a significant victory — not only for our client, but also because it is, as far as I’m aware, the first federal circuit court decision to address the issue of how much weight should be accorded to anonymous short seller allegations in securities litigation,” Blake said.

Blake’s litigation expertise is further demonstrated through his pro bono work, which includes representing migrant children subject to the Remain In Mexico Program.

Looking to future trends, he said: Lawsuits seeking to advance political causes such as those driven by ‘anti-ESG’ or ‘anti-woke’ actors will likely also continue, despite the fact that they have thus far not been particularly successful, and companies will have to make decisions about the amount of disclosure to provide on ESG initiatives and the best strategies to advance their company mission in line with their fiduciary obligations.”