Renewed Dismissal Motions In Bank of America/Merrill Lynch Litigation Denied In Part, Granted In Part

The facts and circumstances surrounding Bank of America's credit crisis-induced acquisition of Merrill Lynch remain among the highest profile and most controversial events during the global financial crisis. In a July 29, 2011 opinion ( here ), Southern District of New York Judge Kevin Castel granted...

New York Comptroller, National City Corp. Settle Securities Class Action Lawsuit For $168 Million

In the latest eye-popping subprime-related securities class action lawsuit settlement, the parties to the National City Corporation securities class action lawsuit have agreed to settle the case for $168 million. The proposed settlement is subject to court approval. The August 8, 2011 press release of...

Cornerstone: Lawsuits Involving U.S.-Listed Chinese Firms Continue To Be Filed In Second Half Of 2011

In its comments about the elevated level of filings against U.S.-listed Chinese companies during the first months of 2011 in its mid-year report on securities class action litigation ( here ), Cornerstone Research noted both that the total number of such companies is relatively small and even made second...

Parties To Consolidated MBIA Subprime Securities Action Agree To Settle For $68 Million

According to papers filed on September 6, 2008, the parties to the consolidated MBIA securities action pending in the Southern District of New York have agreed to settle the lawsuit for $68 million. The settlement is subject to court approval. As noted below, the settlement has some interesting features...

Federal Judge Dismisses Securities Class Action Against U.S.-Listed Chinese Company

In what is as far as I know the first outright dismissal motion grant in the wave of cases filed against U.S.-Listed Chinese companies that began last year, on October 6, 2011, Southern District of New York Judge Miriam Goldman Cedarbaum granted the defendants' motion to dismiss in the securities...

SciClone Pharmaceuticals Settles FCPA Follow-On Derivative Lawsuits

In a settlement that involves a company with significant Chinese operations -- and that also may represent something of a template for the settlement of FCPA enforcement follow-on civil lawsuits -- SciClone Pharmaceuticals and the individual defendant directors and officers have agreed to settle the...

Reports Add Support For Observations On The Grown Of M&A-Related Litigation

There seems to be a general consensus that the amount of M&A-related litigation is increasing. The question of how to quantify the increase has attracted quite a bit of attention lately. In a recent post , I previewed a forthcoming report from Cornerstone Research that will provide detailed statistic...

Tone Used In Disclosure Statements Can Affect Susceptibility To Securities Class Actions

The tone public companies use in their disclosure statements can affect the companies' susceptibility to securities class action litigation, according to a recent academic study. The authors found that firms hit with securities litigation generally used more optimistic language in their disclosure...

Changing Securities Litigation Pattern Result Of Changes In Plaintiff's Securities Litigation Bar

The changing mix of corporate and securities litigation is a recent phenomenon on which I have frequently commented on this blog . While identifying the fact of the change is relatively straightforward, explaining it is more challenging. According to a January 11, 2012 article in The Review of Securities...

One Way To Try And Reduce Evils Associated With Follow-On Derivative Lawsuits

One feature of the recent changing mix of corporate and securities litigation has been the rise in the filing of follow-on derivative lawsuits in the wake of securities class action lawsuit filings. As Wilson Sonsini partner Boris Feldman recently noted , "like a moth drawn to a candle," the...

Will Securities Lawsuits Against U.S.-Listed Chinese Companies Peter Out?

During 2011, plaintiffs filed a wave of securities class action lawsuits against U.S.-listed Chinese companies. There were 39 of these lawsuits filed in 2011 (out of 218 total securities class action lawsuit filings in 2011), as discussed here . Often the complaints in these lawsuits consisted of little...

2nd Circuit Rejects Judge Rakoff's Reasoning In Denying Citigroup Settlement

In a sharply worded March 15, 2012 per curiam opinion ( here ), a three-judge panel of the Second Circuit granted the motions of Citigroup and the SEC to stay district court proceedings in the SEC's enforcement action against the company, so that the appellate court could consider the merits of the...

Securities Class Actions Against Life Sciences Companies 'Significant Component' Of 2011 Filings

Though down from the previous year on both an absolute and a relative basis, securities class action lawsuit filings against life sciences companies remained a significant component of all securities class action lawsuit filings during 2011, according to a March 20, 2012 memorandum entitled "Survey...

Securities Class Action Filings For First Quarter Ran Above Historical Averages

On an annualized basis, the pace of securities class action lawsuit filings for the first quarter of 2012 ran above historical averages, although the pace of filings declined compared to the prior month in the quarter's second and third months. Merger-related cases, which were such a significant...

Fordham Law Prof Catalogues Shortcomings Of Current Securities Class Action Settlement Process

The negotiated resolution of securities class action lawsuits - and absent dismissal, there is rarely any other types of securities suit resolution - is always complicated and occasionally messy, and often involves inefficiencies and sometimes produces distortions and even excesses. Anyone who has ever...

Securities Class Action Lawsuit Filed By H-P Shareholders Over Autonomy Revelations

When H-P announced on November 20, 2012 that it was taking an $8.8 billion charge after it discovered "accounting improprieties, misrepresentations and disclosure failures" at its Autonomy unit (which H-P acquired in October 2011 for $11.1 billion), there was a great deal of speculation that...

2012 Securities Class Action Filings Below Levels Of Recent Years, Historical Averages

Largely as a result of a slowdown in new filings during the fourth quarter, 2012 securities class action lawsuit filings were below the filing levels of recent years and below historical averages. Filing levels remained elevated in the natural resources, life sciences and computer services industries...

Litigation Funding On The Rise In The United States, Abroad

In last week's Advisen webinar on 2012 D&O claims trends, one of the audience questions related to the growth and relevance of litigation funding in the U.S. In responding to the question I noted, among other things, the rise of litigation funding outside the U.S., particularly in Australia and...

Merck Settle Securities Lawsuits for $688 Million, Facebook IPO Derivative Suits Dismissed

In what may be the largest settlement ever in securities class action litigation involving a pharmaceutical company, Merck has agreed to a combined settlement of $688 million to settle two related securities class action cases. The company's February 14, 2013 press release announcing the settlements...