Mealey's Securities/D&O Liability - 9th Circuit Affirms Dismissal Of Securities Class Action Lawsuit

SAN FRANCISCO - A federal district court did not err in dismissing a shareholder's amended securities class action complaint against a robotic surgical devices maker and certain of its executive officers because the shareholder failed to state a claim for relief or properly plead scienter (Police...

Mealey's Securities/D&O Liability - Federal Judge Rules That Shareholder's Securities Law Claim Is Time-Barred

BROOKLYN, N.Y. - A federal judge in New York on July 14 dismissed a shareholder's federal securities law claim against a company alleged to have misrepresented certain information as part of a merger deal, ruling that the shareholder's claim is time-barred (Eli Bensinger, et al. v. Denbury Resources...

Mealey's Securities/D&O Liability - Panel Affirms Dismissal In Securities Suit Against Deutsche Bank, Others

NEW YORK - A federal district court judge did not err in dismissing a shareholder class action lawsuit against Deutsche Bank AG and certain of its subsidiaries and others because the lead plaintiffs in the action failed to state a claim for relief, a Second Circuit U.S. Court of Appeals panel ruled July...

Mealey's Securities/D&O Liability - Judge Grants In Part, Denies In Part Dismissal In Securities Class Action

NEW YORK - Without providing further opinion, a federal judge in New York on July 15 granted in part and denied in part a motion to dismiss filed by Goldman Sachs & Co. and others in a securities class action lawsuit regarding Goldman's alleged misrepresentations pertaining to the financial condition...

Mealey's Securities/D&O Liability - Lloyds To Pay $370M To Settle Libor Manipulation Claims In U.S., U.K.

WASHINGTON, D.C. - Lloyds Banking Group plc has agreed to pay a total of $370 million to settle claims with U.S. and British agencies alleging that Lloyds violated various laws by manipulating the London Interbank Offered Rate (Libor), according a press release issued by the Department of Justice on...

Mealey's Securities/D&O Liability - Judge: Forensic Sampling May Be Appropriate In Consolidated Securities Lawsuits

NEW HAVEN, Conn. - Although a Connecticut federal judge on Aug. 4 saw the value in conducting forensic in several residential mortgage-backed securities (RMBS), which comprise thousands of mortgages, he declined to issue a definitive ruling and denied a trust's motion to expedite the matter and conduct...

Mealey's Securities/D&O Liability - 4th Circuit Remands Fiduciary Duty Case Involving Diversification Of Plan Assets

RICHMOND, Va. - The Fourth Circuit U.S. Court of Appeals ruled 2-1 on Aug. 4 that a federal judge applied the wrong causation standard to claims by participants in R.J. Reynolds Tobacco Co.'s 401(k) plan that the plan fiduciaries are monetarily liable for breaching their fiduciary duties under the...

Mealey's Securities/D&O Liability - Judge Won't Dismiss Claims In Securities Class Action Lawsuit

LOS ANGELES - Dismissal of a shareholder class action lawsuit is not proper, a federal judge in California ruled in an order made available on Aug. 13, because shareholders have properly pleaded a material misrepresentation and scienter (David M. Loritz, et al. v. Exide Technologies, et al., No. 13-2607...

Mealey's Securities/D&O Liability - Lead Plaintiff Properly Pleaded Securities Law Claims, Federal Judge Rules

ATLANTA - A federal judge in Georgia on Aug. 13 refused to dismiss a shareholder class action lawsuit against a therapeutic biomaterials developer and certain of its executive officers, ruling that the lead plaintiff in the action had properly pleaded all elements of his federal securities law claims...

Mealey's Securities/D&O Liability - Lead Plaintiffs Properly Pleaded Scienter In Securities Suit, Judge Rules

SAN FRANCISCO - Dismissal of a securities class action lawsuit is not warranted because the lead plaintiff in the action has properly pleaded scienter, a federal judge in California ruled in an opinion made available on Aug. 15 (Scott Bruce v. Suntech Power Holdings Co. Ltd., et al., No. 12-4061, N.D...

Mealey's Securities/D&O Liability - Judge Gives Final Approval To $62.5M Securities Class Action Settlement

MINNEAPOLIS - A federal judge in Minnesota on Aug. 18 granted final approval of a $62.5 million settlement on shareholder claims that Wells Fargo N.A. failed to ensure that certain funds that were part of a securities-lending program were not high-risk and long-term investments in violation of several...

Mealey's Securities/D&O Liability - Judge Certifies Securities Class Action Against Chinese Media Company

NEW YORK - A group of plaintiffs alleging securities fraud by a Chinese television advertising firm have met the class certification requirements of Federal Rule of Civil Procedure 23, a New York federal judge found Aug. 15, granting a motion to certify the proposed class and denying a defendant's...

Mealey's Securities/D&O Liability - Bank Of America To Pay Nearly $17B Over Handling Of Subprime Mortgages

WASHINGTON, D.C. - Bank of America Corp. will pay nearly $17 billion to settle claims that it and its current and former subsidiaries, Countrywide Financial Corp. and Merrill Lynch, engaged in fraudulent activity with regard to their origination, underwriting and sale of subprime mortgages and mortgage...

Mealey's Securities/D&O Liability - Goldman Sachs To Pay $3B To Settle Claims It Sold Toxic Securities

NEW YORK - In an announcement made late on Aug. 22, Goldman Sachs & Co. said it will pay more than $3 billion to settle claims filed by the Federal Housing Finance Agency (FHFA) that it violated state and federal securities laws in its sale and packaging of residential mortgage-backed securities...

Mealey's Securities/D&O Liability - Judge Won't Grant Summary Judgment In AIG Takeover Lawsuit

WASHINGTON, D.C. - A Federal Claims Court judge on Aug. 25 denied the U.S. government's attempt at summary judgment in a securities fraud class action lawsuit, ruling that the action must be determined at trial (Starr International Company Inc. v. The United States, No. 11-779, Fed. Clms.).

Mealey's Securities/D&O Liability - Investor Properly Pleaded Demand Futility In Derivative Lawsuit, Judge Rules

GREENBELT, Md. - A shareholder has properly pleaded demand futility on the part of a biopharmaceutical company's board of directors, a federal judge in Maryland ruled Sept. 5 in denying the defendants' motion to dismiss a shareholder derivative lawsuit (Georg Garnitschnig v. Zola P. Horovitz...

Mealey's Securities/D&O Liability - 2nd Circuit Panel Affirms Dismissal Of Securities Class Action Against Xerox

NEW YORK - A federal district court did not err in dismissing a securities class action lawsuit against Xerox Corp. and several of its executive officers because shareholders failed to plead any genuine dispute of material fact with regard to the sufficiency of Xerox's disclosures about the success...

Mealey's Securities/D&O Liability - Panel Affirms Ruling Denying Admission Of New Evidence In Securities Suit

NEW YORK - A federal district court did not abuse its discretion in determining that new evidence in a securities class action lawsuit would not have changed the outcome of an earlier ruling because the new evidence was nothing more than "mere commercial puffery," a Second Circuit U.S. Court...

Mealey's Securities/D&O Liability - Shareholders, Underwriters Reach $340M Settlement In Securities Class Action

NEW YORK - Shareholders and underwriters in a securities class action lawsuit stemming from IndyMac Bancorp's certificate offerings over a three-year period from 2005 to 2007 have agreed to settle all claims for $340 million, according to court documents filed Sept. 11 by the shareholders (In re...

Mealey's Securities/D&O Liability - Shareholder Failed To Plead Loss Causation, 9th Circuit Panel Rules

SAN FRANCISCO - A federal district court did not err in dismissing a securities class action lawsuit because a shareholder failed to properly plead loss causation, a Ninth Circuit U.S. Court of Appeals panel ruled Sept. 11 in an amended opinion (John P. Loos v. Immersion Corp., et al., No. 12-15100,...

Mealey's Securities/D&O Liability - Judge: No Coverage For 5 Suits Brought By Purchasers Of Mortgage-Backed Securities

NEW YORK - There is no directors and officers liability coverage for five underlying lawsuits arising out of the securitizations of residential mortgage-backed securities, a New York federal judge ruled Sept. 11 (Nomura Holding America Inc. v. Federal Insurance Co., No. 13-5913, S.D. N.Y.; 2014 U.S....

Mealey's Securities/D&O Liability - Securities Fraud Plaintiffs May Present Causation, Damages Testimony, Judge Rules

PHILADELPHIA - The testimony of a loss causation and damages expert proffered by the lead plaintiffs in a securities fraud class action is relevant and reliable, a Pennsylvania federal judge held Sept. 16, stating that the expert was not required to opine on all of the plaintiffs' claims (In Re DVI...

Mealey's Toxic Tort/Environmental - Judge: Fracking Company Shareholder Lawsuit Valid; Illegal Activity Suggested

OKLAHOMA CITY - A federal judge in Oklahoma on Sept. 22 denied a motion to dismiss a shareholder derivative lawsuit brought by plaintiffs who own shares in a hydraulic fracturing company, concluding that they alleged facts that when taken as a whole suggest illegal conduct by individuals who allegedly...

Mealey's Securities/D&O Liability - Judge: Fracking Company Shareholder Lawsuit Valid; Illegal Activity Suggested

OKLAHOMA CITY - A federal judge in Oklahoma on Sept. 22 denied a motion to dismiss a shareholder derivative lawsuit brought by plaintiffs who own shares in a hydraulic fracturing company, concluding that they alleged facts that when taken as a whole suggest illegal conduct by individuals who allegedly...

Mealey's Securities/D&O Liability - High Court Orders Securities Class Action Parties To File Additional Briefing

WASHINGTON, D.C. - The U.S. Supreme Court on Sept. 23 issued an order requiring parties in a securities class action lawsuit against IndyMac MBS Inc. to file letter briefs addressing whether the case still needs to be heard due to a pending settlement agreement reached by the parties in federal district...