Phenomenon Of Securities Class Action Opt-Out Cases May Be Back

Settlement opt-outs have been always been a feature of securities class action litigation. However, as part of the settlements of the huge cases filed during the era of corporate scandals at the beginning of the last decade, opt outs became more prevalent and they represented an increasingly significant...

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...

14 Former Lehman Brothers Execs Agree To Settle Securities Class Action For $90 Million

In a development that undoubtedly will attract comment and controversy, fourteen former Lehman Brothers executives--including former Lehman Chairman and CEO Dick Fuld --have reached an agreement to settle the consolidated securities class action litigation that has been filed against them for $90 million...

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...

Judge Grants Preliminary Approval Of $145 Million Settlement In Securities Class Action

PHOENIX - (Mealey's) A federal judge in Arizona on Nov. 29 preliminarily approved a $145 million settlement between shareholders and Apollo Group Inc. and certain of its executive officers to end the long-running securities class action lawsuit ( In re Apollo Group, Inc. Securities Litigation , No...

$507 Million In Settlements Reached With Lehman Officers, Directors, Underwriters

NEW YORK - (Mealey's) In a motion made available on Dec. 5, lead plaintiffs in a securities class action lawsuit against Lehman Brothers Holdings Inc., certain of its formers officers and directors and others asked a federal judge in New York to approve two settlements totaling $507 million to settle...

M&A-Related Lawsuit Filings Now Outnumber Federal Securities Class Action Filings

In a prior post ( here ), I examined the mounting problems associated with the increasing levels of M&A-related litigation. A recent academic paper takes a closer look at these issues and concluded, among other things, that M&A-related lawsuit filings now outnumber federal securities class action...

Mortgage Meltdown Litigation Pays Hundreds Of Millions To Injured Plaintiffs

The economy seems to be heading at last into recovery territory, and the mortgage crisis that began in 2007 is starting to seem like old news. But the effects of the lax underwriting standards and other questionable loan practices that spawned the crisis continue to play out in courts across the country...

Former Bear Stearns Auditor To Pay Nearly $20 Million To Settle Securities Law Claims

NEW YORK - (Mealey's) The former independent outside auditor for The Bear Stearns Cos. Inc. agreed on Monday to pay nearly $20 million to settle shareholder claims that it failed to accurately monitor the financial giant's internal controls with regard to Bear Stearns' issuance of risky subprime...

High Court Agrees To Hear Appeal In Securities Suit Against Drug Maker

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on June 11 agreed to hear an appeal of a Ninth Circuit U.S. Court of Appeals ruling affirming a federal district court's grant of class certification in a securities class action lawsuit against a drug maker and others ( Amgen Inc., Kevin W...

Lead Plaintiffs In Securities Class Action Lawsuit Against Goldman Sachs Agree To Settlement

NEW YORK - (Mealey's) Lead plaintiffs in a securities class action lawsuit against Goldman Sachs & Co. Inc., certain of its subsidiaries and officers and directors and three ratings agencies have agreed to settle their claims against the defendants, according to a letter sent July 18 to the federal...

Securities Class Action Litigation Follows LIBOR Scandal

At the PLUS D&O Symposium in New York this past March, I participated on a panel entitled, "Financial Institutions Underwriting: Is it Safe to Come Out Yet?" The implication of the panel topic was that perhaps with the passage of the credit crisis, financial institutions might not be as...

NERA Report Says Securities Class Action Filings At Or Above Historic Levels In 2012

According to NERA Economic Consulting's mid-year 2012 report, securities class action lawsuit filings were at or above historical levels in 2012, and though average securities class action lawsuit settlements during the year's first half approached all times highs, the pace of securities suit...

$26 Million Settlement Reached In Mortgage-Backed Securities Shareholder Class Action

NEW YORK - (Mealey's) Lead plaintiffs in a securities class action lawsuit against The Goldman Sachs Group Inc. and others have agreed to settle their claims for more than $26 million, according to court documents filed July 31 in a New York federal court ( Public Employees' Retirement System...

$37 Million Settlement Reached In Tronox Investor Class Action Lawsuit

NEW YORK - (Mealey's) Shareholders and defendants in a securities class action lawsuit against a chemical company, certain of its officers and directors and others have agreed to a $37 million settlement of all federal securities law claims, according to court documents made available on Aug. 7 ...

Parties In Tronox Securities Litigation Agree To Settle For $37 Million

According to papers filed in the Southern District of New York on August 3, 2012, the parties to the Tronox securities litigation have agreed to settle the case for a total of $37 million. As I noted at the time that this suit was first filed back in July 2009 ( here ), the case, which alleged that the...

Judge Preliminarily OKs $590 Million Citigroup Securities Class Action Settlement

NEW YORK - (Mealey's) A federal judge in New York on Aug. 29 granted preliminary approval of a $590 million settlement between shareholders, Citigroup Inc. and certain of its current and former executive officers and directors on claims that the defendants misrepresented Citigroup's exposure...

$26 Million Settlement Reached In WaMu Mortgage-Backed Securities Class Action

SEATTLE - (Mealey's) Lead plaintiffs and defendants in a securities class action lawsuit against two subsidiaries of Washington Mutual Bank and certain of its officers and directors have agreed to a $26 million settlement on claims that the defendants misrepresented the investment quality of certain...

$23.5 Million Settlement Reached In Constar IPO Securities Class Action

PHILADELPHIA - (Mealey's) Lead plaintiffs and defendants in a securities class action lawsuit against a company, certain of its officers and directors and others have agreed to a $23.5 million settlement of claims pertaining to the defendants' alleged misrepresentations made in offering documents...

Sallie Mae Reaches $24 Million Settlement In Telephone Debt Collection Class Action

SEATTLE - (Mealey's) Student loan borrowers and a subsidiary of SLM Corp. on Sept. 17 agreed to settle claims that the subsidiary violated the Telephone Consumer Protection Act (TCPA) by making a number of non-emergency autodialed calls and/or automated text messages to the borrowers' cellular...

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...

Merck To Pay $688 Million To Settle 2 Securities Class Action Lawsuits

WHITEHOUSE STATION, N.J. - (Mealey's) Merck and Co. Inc. will pay $688 million to settle two securities class action lawsuits filed in New Jersey federal court alleging that the drug maker and others failed to disclose adverse results of a clinical trial for two cholesterol drugs Merck was developing...

Supreme Court Rules Materiality Not A Prerequisite To Certification In Securities Class Action Lawsuit

WASHINGTON, D.C. - (Mealey's) Materiality is not a prerequisite to class certification in a securities class action lawsuit where the plaintiffs are seeking monetary damages for alleged violations of Sections 10(b) of the Securities Exchange Act of 1934 and Securities and Exchange Commission Rule...

Cornerstone Report Says Securities Class Actions Involving Accounting Allegations Less Likely To Be Dismissed, Take Longer To Resolve

Securities class action lawsuits involving accounting allegations are less likely to be dismissed, take longer to resolve, and make up a much greater proportion of total securities suit settlement dollars than non-accounting cases, according to a new report from Cornerstone Research. The report, entitled...

High Court Hears Oral Argument In Securities Fraud Class Action

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court on March 5 heard oral arguments in a securities class action lawsuit seeking a determination as to whether the Supreme Court should overturn or limit its holding in Basic Inc. v. Levinson (485 U.S. 224 [1988] [ enhanced opinion available...