Mealey's Securities/D&O Liability - Shareholder: Directors And Officers Participated In Wrongful Compensation Plan

LOS ANGELES - A company shareholder claims in a suit filed in federal court in California on May 15 that certain company directors and officers breached their fiduciary duties regarding a stock compensation plan when the company was losing large amounts of money (Steve Roof v. Sterling C. Scott, et al...

Mealey's Securities/D&O Liability - Shareholders Say Members Of Company's Board Face Liability For Their Actions

BOSTON - Two shareholders suing certain of a company's directors and officers for breach of fiduciary duty told a federal court in Massachusetts on May 14 that presuit demand upon the company's board would have been futile because a majority of the board members face a substantial likelihood...

Mealey's Securities/D&O Liability - Shareholder Counters Directors', Officers' Claim Regarding Presuit Demand

WILMINGTON, Del. - A shareholder told a federal court in Delaware on May 16 that presuit demand upon a company's board of directors would have been futile (Joseph Quintal, Jr. v. Susan B. Bayh, et al., No. 14-cv-00311, D. Del.).

Mealey's Securities/D&O Liability - Directors And Officers Say Judge Was Correct In Dismissing Shareholder Suit

NEW YORK - Certain of a company's current and former directors and officers told a federal court in New York on May 15 that the court did not overlook any facts that would have altered its finding that shareholders had failed to show that presuit demand upon the company's board would have been...

Mealey's Securities/D&O Liability - Shareholders Say Directors And Officers Made False And Misleading Statements

TOLEDO, Ohio - Shareholders told a federal court in Ohio on May 19 that certain of a company's directors and officers breached their fiduciary duty by making false and misleading statements regarding a proposed merger (In re Cooper Tire & Rubber Company, No. 14-cv-00428, N.D. Ohio).

Mealey's Securities/D&O Liability - Judge: Investor Failed To Plead Misrepresentation In Securities Class Action

LEXINGTON, Ky. - Dismissal of a securities class action lawsuit against a mattress manufacturer and distributor and certain of its executive officers is proper because a shareholder has failed to plead any material misrepresentations or omissions as required under the federal securities laws, a federal...

Mealey's Securities/D&O Liability - 2nd Circuit Panel Denies Rehearing In Madoff Feeder Fund Lawsuit

NEW YORK - Finding the U.S. Supreme Court's ruling in Chadbourne & Park LLP v. Troice to confirm both the "logic and holding" of a Second Circuit U.S. Court of Appeals' ruling in an Bernard L. Madoff Investment Securities LLC (Madoff Securities) feeder fund lawsuit, a Second Circuit...

Mealey's Securities/D&O Liability - Judge Won't Dismiss Federal Securities Law Claims In Merger Deal Class Action

NEW YORK - A federal judge in Florida on May 30 substantially denied defendants' motions to dismiss a securities class action lawsuit regarding the acquisition of a company, ruling that the shareholder that brought the suit has properly pleaded his claims and that the federal court has jurisdiction...

Mealey's Securities/D&O Liability - Panel Overturns Order Rejecting $285M Settlement Between SEC, Citigroup

NEW YORK - A Second Circuit U.S. Court of Appeals panel on June 4 vacated a federal judge's order rejecting the Securities and Exchange Commission's $285 million proposed settlement with Citigroup Global Markets Inc. over alleged misstatements made regarding the investment quality of a collateralized...

Mealey's Securities/D&O Liability - Judge Dismisses Shareholder Suit Because Of Failure To Prove Demand Futility

NEW YORK - A federal judge in New York on June 10 dismissed a shareholder derivative lawsuit, holding that the shareholders had failed to make a presuit demand upon the company's board or show that such demand would have been futile (John C. Campbell, et al. v. Weihu Yu, et al., No. 12-cv-03169,...

Mealey's Securities/D&O Liability - High Court Dismisses JPMorgan Chase From Madoff Suit

WASHINGTON, D.C. - The U.S. Supreme Court on June 9 granted a stipulation of dismissal of claims against JPMorgan Chase & Co. Inc. and certain of its subsidiaries in a securities lawsuit filed by the trustee of Bernard L. Madoff Investment Securities (BLMIS) against a number of parties that failed...

Mealey's Securities/D&O Liability - Shareholder Claims Standing To Bring Lawsuit Against Directors And Officers

LAS VEGAS - A shareholder claiming standing to bring a derivative lawsuit in a federal court in Nevada said June 10 that the alleged wrongdoing continued after the shareholder purchased shares in the company (W.A. Sokolowski v. Sheldon G. Adelson, et al., No. 14-cv-00111, D. Nev.).

Mealey's Securities/D&O Liability - High Court Declines Review Of Rajaratnam Insider Trading Conviction

WASHINGTON, D.C. - The U.S. Supreme Court on June 16 declined to review a Second Circuit U.S. Court of Appeals' ruling upholding the conviction of hedge fund founder Raj Rajaratnam on claims that he violated federal securities law for his role in a massive insider trading scheme (Raj Rajaratnam v...

Mealey's Securities/D&O Liability - Supreme Court Remands Mortgage-Backed Securities Lawsuit To 10th Circuit

WASHINGTON, D.C. - The U.S. Supreme Court on June 16 vacated a lower court ruling denying dismissal of a consolidated National Credit Union Administration (NCUA) lawsuit against several financial institutions over their sale of residential mortgage-backed securities (RMBS) to two failed credit unions...

Mealey's Securities/D&O Liability - RBS To Pay $99.5M To Settle Claims In Fannie Mae, Freddie Mac Lawsuits

NEW YORK - Royal Bank of Scotland Securities Inc. (RBSSI) on June 19 agreed to pay $99.5 million to settle claims that it violated state and federal securities laws by misrepresenting the investment quality of residential mortgage-backed securities it underwrote that were subsequently sold to Fannie...

Mealey's Securities/D&O Liability - Panel: Injunctive Relief, Civil Penalties Warranted In Insider Trading Suit

NEW YORK - A federal district court did not err in granting injunctive relief and imposing treble civil penalties against former Goldman Sachs director Rajat K. Gupta for his role in an insider trading scheme because such actions were appropriate, a Second Circuit U.S. Court of Appeals panel ruled June...

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

WILMINGTON, Del. - A federal judge in Delaware on June 18 granted a motion by shareholders to certify a class and appoint lead and liaison counsel in a securities class action lawsuit, ruling that the class has met all statutory guidelines for approval (Robert Skeway, et al. v. China Natural Gas Inc...

Mealey's Banking & Finance - Supreme Court Refuses To Overrule Basic Presumption In Securities Fraud Suits

WASHINGTON, D.C. - The U.S. Supreme Court on June 23 found that Halliburton Co. has not shown a "special justification" for overruling the reliance presumption of Basic v. Levinson (485 US. 224, U.S. Sup. [1988]) in securities fraud cases (Halliburton Co., et al. v. Erica F. John Fund Inc....

Mealey's Banking & Finance - 2nd Circuit Affirms Dismissal Of Class Suit Against BlackBerry Maker

NEW YORK - The Second Circuit U.S. Court of Appeals on June 19 affirmed the dismissal of a securities fraud class action against BlackBerry maker Research In Motion Ltd. (RIM), finding that the plaintiffs' allegations were not sufficient to plead scienter (Laura Prefontaine v. Research In Motion...

Mealey's Banking & Finance - SEC Moves For Approval Of Judgment In Suit Against Attorney

MIAMI - The Securities and Exchange Commission on June 20 asked a Florida federal court to approve a judgment requiring an attorney and associated entities to pay more than $3.5 million to settle allegations that they had a role in a scheme that defrauded investors of millions of dollars (Securities...

Mealey's Banking & Finance - 2nd Circuit Affirms Dismissal Of Investor Suit Against Merrill Lynch

NEW YORK - A federal court properly dismissed a shareholder suit against Merrill Lynch alleging securities law violations in connection with the sale of auction-rate securities (ARS), the Second Circuit U.S. Court of Appeals ruled June 25, agreeing that the shareholder's federal, state and common...

Mealey's Securities/D&O Liability - High Court Grants Cert, Remands Case In Light Of Fifth Third Bancorp

WASHINGTON, D.C. - The U.S. Supreme Court on June 30 granted certiorari, vacated judgment and remanded a Ninth Circuit U.S. Court of Appeals decision in a case arising under the Employee Retirement Income Security Act light of the high court's recent presumption of prudence ruling in Fifth Third...

Mealey's Securities/D&O Liability - Supreme Court Won't Revive AIG Shareholder Suit

WASHINGTON, D.C. - The U.S. Supreme Court on June 30 declined to revive a shareholder lawsuit against the Federal Reserve Bank of New York (FRBNY) alleging that FRBNY used its control over American International Group Inc. (AIG) in connection with a transaction involving AIG's credit default swap...

Mealey's Securities/D&O Liability - High Court Declines To Review Madoff Ponzi Scheme Suit

WASHINGTON, D.C. - The U.S. Supreme Court on June 30 declined to hear an appeal in a lawsuit against a number of parties that failed to properly investigate Bernard L. Madoff's massive Ponzi scheme (Irving H. Picard v. JPMorgan Chase & Co., et al., No. 13-448, U.S. Sup.).

Mealey's Securities/D&O Liability - High Court Grants Cert, Remands Cases In Light Of Fifth Third Bancorp

WASHINGTON, D.C. - The U.S. Supreme Court on July 1 granted certiorari, vacated judgments and remanded two stock-drop cases arising under the Employee Retirement Income Security Act, one each to the Second and Fifth Circuits U.S. Court of Appeals, in light of the high court's recent presumption-of...