LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - Panel: Shareholders Failed To Plead Caremark Claim In Madoff Suit

NEW YORK - A Second Circuit U.S. Court of Appeals panel on Jan. 6 affirmed a federal district court's ruling in a shareholder derivative lawsuit, ruling that shareholders have failed to plead their claim under In re Caremark Int'l Inc. Derivative Litigation as required pursuant to Delaware law...

Mealey's Securities/D&O Liability - Investor Failed To Plead Scienter In Making Securities Law Claim, Judge Rules

SAN JOSE, Calif. - Dismissal of a second amended securities class action complaint is proper because a shareholder has failed to properly plead scienter in making his federal securities law claims against a solar energy company and certain of its officers and directors, a federal judge in California...

Mealey's Securities/D&O Liability - Judge Issues Restraining Order On Shkreli's E*Trade Brokerage Account

BROOKLYN, N.Y. - The federal judge in New York overseeing the criminal case against alleged Ponzi scheme operator Martin Shkreli on Jan. 7 issued a restraining order preventing Shkreli or any of his associates from using the funds of a $45 million E*Trade individual brokerage account (United States of...

Mealey's Securities/D&O Liability - Investors Failed To Plead Scienter, Loss Causation In Securities Class Action

NEW YORK - Dismissal of a shareholder class action lawsuit is proper, a federal judge in New York ruled Jan. 6, because the shareholders failed to properly plead any material misrepresentations, scienter or loss causation in making their federal securities law claims (In re Sanofi Securities Litigation...

Mealey's Securities/D&O Liability - Shareholder Failed To Plead Securities Claims In Complaint, Judge Rules

LOS ANGELES - Although a shareholder has properly pleaded a number of claim in a securities class action lawsuit, he has done so in his opposition brief and not in his first amended complaint as required, a federal judge in California ruled Jan. 7 in granting a motion to dismiss with leave to amend ...

Mealey's Securities/D&O Liability - High Court Declines Review Of 2nd Circuit Ruling In Securities Class Action

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 11 declined to review a Second Circuit U.S. Court of Appeals' ruling affirming a lower court's decision to deny leave to amend in a securities class action lawsuit (NECA-IBEW Pension Trust Fund, et al. v. Kenneth D. Lewis, et al., No. 15-562,...

Mealey's Securities/D&O Liability - U.S. Supreme Court Won't Review Mortgage-Backed Securities Lawsuit Ruling

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 11 declined to review a Second Circuit U.S. Court of Appeals' reversal of a federal district court ruling in a securities class action lawsuit against Bank of New York Mellon (BNYM) regarding its sale of certain residential mortgage-backed securities...

Mealey's Securities/D&O Liability - Report: Number Of SEC Enforcement Action Filings Climbed In FY 2015

BOSTON - More than 800 Securities and Exchange Commission enforcement actions were filed in fiscal year (FY) 2015, up from 681 in FY 2010, according to a report jointly issued Jan. 12 by economic and financial consulting firm Cornerstone Research and the New York University Pollack Center for Law and...

Mealey's Securities/D&O Liability - Shareholder Sues Fitbit, Others Over Alleged Misrepresentations

SAN FRANCISCO - A shareholder filed a securities class action lawsuit against a fitness-tracking device manufacturer and certain of its executive officers in California federal court on Jan. 11, alleging that the defendants issued a series of misrepresentations that caused the company's stock to...

Mealey's Securities/D&O Liability - U.S. Supreme Court Agrees To Review Insider- Trading Conviction

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 19 granted review of an insider-trading conviction in which the alleged inside trader has argued that determination of the "nature of the personal benefit an insider must receive for an insider trading offense" and whether "inaction . ...

Mealey's Securities/D&O Liability - 6th Circuit Won't Rehear Ruling That State Street Was Prudent During GM Bankruptcy

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Jan. 14 denied rehearing of its divided ruling rejecting claims that State Street Bank and Trust Co. breached its statutory duty of prudence as fiduciary of the General Motors (GM) Employee Stock Ownership Plan (ESOP) (Raymond M. Pfeil and Michael...

Mealey's Securities/D&O Liability - 9th Circuit Upholds Admission Of Testimony On Fiduciary Status, Wire Fraud Convictions

SAN FRANCISCO - Finding no error in admitting testimony regarding a defendant's status as a fiduciary, the Ninth Circuit U.S. Court of Appeals on Jan. 15 affirmed convictions on 24 counts of wire fraud, seven counts of money laundering and one count of investment-adviser fraud (United States of America...

Mealey's Securities/D&O Liability - Accountant May Testify To Finances In Alleged Defrauding Scheme, Federal Judge Holds

INDIANAPOLIS - A certified public accountant may testify as a layperson to opine that a defendant has the finances to pay off investors despite allegations from the U.S. government that the defendant defrauded investors, an Indiana federal judge ruled Jan. 15 (United States of America v. Jaime C. Lopez...

Mealey's Securities/D&O Liability - Securities Class Action Filings Up Near Seven-Year High, Report Shows

NEW YORK - The number of federal securities class action filings reached numbers not seen in seven years, as 234 complaints were filed, including 182 alleging violations of Securities and Exchange Commission Rule 10b-5 and Sections 11 and 12 of the Securities Act of 1933, according to a report released...

Mealey's Securities/D&O Liability - High Court: 9th Circuit Erred In Evaluating Fiduciary Breach Complaint Under Fifth Third

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 25 in a per curiam opinion reversed the Ninth Circuit U.S. Court of Appeals' ruling that participants in eligible individual account plans (EIAPs) sponsored by Amgen Inc. sufficiently alleged that the plans' fiduciaries breached their fiduciary...

Mealey's Securities/D&O Liability - Judge Grants Final Approval Of $42.5M Securities Class Action Settlement

CHICAGO - A federal judge in Illinois on Jan. 22 granted final approval of a $42.5 million settlement in a securities class action lawsuit regarding certain false and misleading statements made by a medical device maker and certain of its executive officers and directors regarding the demand of certain...

Mealey's Securities/D&O Liability - Securities Class Action Filings Reach 7-Year High, Cornerstone Report Shows

BOSTON - Securities class action lawsuit filings reached a seven-year high in 2015 and saw a double-digit increase from the number filed in 2014, according to a report released jointly on Jan. 26 by economic and financial consulting firm Cornerstone Research and the Stanford Law School Securities Class...

Mealey's Securities/D&O Liability - Facebook Directors Agree To Corporate Governance Changes As Part Of Settlement

WILMINGTON, Del. - The board of directors for Facebook Inc. on Jan. 25 agreed to enact a series of corporate governance reforms regarding the oversight of outside, nonmanagement directors to settle claims in a derivative lawsuit filed by a shareholder over the company's issuance of excessive compensation...

Mealey's Securities/D&O Liability - Emails Between Shkreli, Attorney Not Attorney-Client Privilege, Judge Rules

BROOKLYN, N.Y. - A federal judge in New York ruled that emails between former hedge fund manager Martin Shkreli and attorney Evan Greebel are not covered under attorney-client privilege, according to an order that was unsealed Jan. 26 (In re Grand Jury Investigation, No. 15-mc-2227, E.D. N.Y.).

Mealey's Securities/D&O Liability - Judge Grants Final Approval Of $8M Securities Class Action Settlement

PHILADELPHIA - A federal judge in Pennsylvania on Jan. 26 granted final approval of an $8 million settlement in a securities class action lawsuit claiming that a pharmaceutical company and certain of its executive officers misrepresented the marketing and sale of one of its antibiotic drugs in violation...

Mealey's Securities/D&O Liability - Federal Judge Trims Claims In Securities Class Action Lawsuit

SAN FRANCISCO - A federal judge in California on Jan. 27 granted in part and denied in part a motion to dismiss filed by a corporation and certain of its executive officers in a securities class action lawsuit, ruling that some of the alleged misrepresentations cited by the lead plaintiff in making his...

Mealey's Securities/D&O Liability - Barclays, Credit Suisse To Pay $154.3M In Penalties Over Dark Pool Violations

WASHINGTON, D.C. - Barclays Capital Inc. and Credit Suisse Credit Suisse (USA) LLC (CSSU) will pay a total of $154.3 million to settle claims filed by the Securities and Exchange Commission and New York Attorney General Eric Schneiderman alleging that they violated federal securities laws in their operations...

Mealey's Securities/D&O Liability - Morgan Stanley To Pay $63M To Settle Claims Over Sale Of Mortgage-Backed Securities

ARLINGTON, Va. - Morgan Stanley will pay almost $63 million to settle claims in five different lawsuits filed in various state and federal courts brought by the Federal Deposit Insurance Corp. (FDIC) alleging that Morgan Stanley and its related entities misrepresented the investment quality of residential...

Mealey's Securities/D&O Liability - Panel: Pension Fund Pleaded Loss Causation In Making Securities Claims

SAN FRANCISCO - A Ninth Circuit U.S. Court of Appeals panel on Feb. 1 affirmed in part and reversed and remanded in part a federal district court's ruling in a securities class action lawsuit, holding that a pension fund properly pleaded scienter and loss causation in making certain claims pursuant...

Mealey's Securities/D&O Liability - Judge Grants Preliminary Approval Of $3M Settlement In Securities Class Action

NEW YORK - A federal judge in New York on Feb. 2 granted preliminary approval of a $3 million settlement between shareholders and a pharmaceutical company and certain of its current and former officers and directors who are alleged to have misrepresented several stock transactions and "improper...