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High Court Weighs Fraud Lawsuit Against Aussie Bank

WASHINGTON, D.C. – (AP) The Supreme Court indicated Monday it could prohibit foreign investors from using U.S. securities law and American courts to sue a foreign bank for fraud. The court heard argument in a challenge from Australian investors who want to sue the Melbourne-based National Australia...

Supreme Court Hears Argument On Jurisdiction Questions In Securities Case

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court heard oral argument March 29 on the question of whether the United States has subject matter jurisdiction over a class action lawsuit filed by shareholders of an Australian bank who alleged that the company committed securities fraud within...

Merck: The Statute Of Limitations In Securities Fraud Damage Suits

In a result joined by all of the justices, the Supreme Court affirmed the decision of the Third Circuit, concluding that plaintiffs' had timely filed a securities fraud suit against Merck & Co. Merck & Co. v. Reynolds , Case No. 08-905 S.Ct. (April 27, 2010). The case centers on alleged...

BP Shareholders File Lawsuit Over Gulf Oil Spill In Western District Of Louisiana

LAFAYETTE, La. - (Mealey's) A class of investors of American Depositary Receipts of BP PLC on June 7 filed a securities fraud complaint against the company, alleging that it made false and misleading statements about problems with its oil drilling rig problems, which led to the explosion and...

Berman DeValerio Files Class Action Lawsuit Extending Class Period In BP Action

NEW ORLEANS, La. - The law firm of Berman DeValerio has filed a securities fraud lawsuit against BP plc, expanding the complaint to cover certain investors who acquired BP stock as early as mid-2005 ( The Oklahoma Police Pension & Retirement System v. BP, et al. , No. 2:10-cv-02013, E.D. La.). ...

WellCare Announces $200 Million Settlement In Securities Class Action

TAMPA, Fla. - (Mealey's) WellCare Health Plans Inc. announced Aug. 9 that it has reached an agreement to settle for $200 million a putative securities fraud class action that was brought against it in a Florida federal court ( Eastwood Enterprises, LLC, et al. v. Todd S. Farha, et al. , No. 8:07...

Preliminary Approval Of $12 Million Settlement In New Century Class Action Granted

LOS ANGELES - (Mealey's) A federal judge in California on Aug. 9 preliminarily approved a $125 million settlement agreement between shareholders, former officers and directors of subprime mortgagor New Century Financial Corp., the company's outside auditor and the underwriters of New Century's...

Russell Budd Announces Opening Of Baron & Budd P.C. Office In Miami

MIAMI - Russell Budd has announced the opening of plaintiff's law firm Baron & Budd, P.C. 's new office in Miami. The new office will offer its services to individuals and businesses with environmental issues as well as those victimized by unsafe drugs and securities fraud. Baron &...

Bridget Rohde To Participate In National Institute On Securities Fraud

NEW YORK - Bridget Rohde , a member in the Litigation Section of the New York office of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, PC ., will be speaking at the ABA's Fifth Annual National Institute on Securities Fraud, October 7-8, 2010. The program will address the issues and trends affecting...

Judge Allows Citigroup CDO Fraud Case To Proceed

NEW YORK - (AP) A federal judge is allowing a portion of a proposed class-action securities fraud lawsuit against Citigroup Inc., several executives and a board member to go forward. In a ruling filed Tuesday, Judge Sidney H. Stein said. . . . Full version available to lexis.com subscribers .

Oral Argument Heard In Securities Class Action Challenging Primary Liability Of Service Providers

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on Dec. 7 heard oral argument in a securities class action lawsuit challenging whether a service provider can be held liable in a private securities fraud action for helping or participating in another company's misrepresentations in a prospectus...

The N.Y. Attorney General’s Lawsuit Against E&Y: Substance vs. Form

Lehman Brothers' auditor Ernst & Young was named as a defendant in a Martin Act securities fraud suit by the New York Attorney General. The complaint claims that for years the giant accounting firm issued clean audit opinions on Lehman's financial statements while knowing that they were false...

Some Questions About the N.Y. AG's Lehman-Related Complaint Against E&Y

New York Attorney General Andrew Cuomo's December 21, 2010 filing of a civil fraud lawsuit against Ernst & Young in connection with the audit firm's services to Lehman Brothers has captured headlines in business pages around the world. The complaint itself, which can be found here , raises...

The SEC Prevails In Court In Case Involving Unregistered Securities

The Commission has had mixed results in court in recent months. The agency has prevailed in some cases. In others it has lost. Some losses raise troubling questions about the program ( here ). In SEC v. Radical Bunny , LLC, Case No. 2:09-cv-01560 (D. Ariz. Filed July 28, 2009) however the Commission...

Split High Court: Service Provider Can't Be Held Liable For Misrepresentations

WASHINGTON, D.C. - (Mealey's) A service provider cannot be held liable in a private securities fraud class action for helping or participating in another company's misrepresentations in a prospectus statement for a stock offering because the misstatements were made by another party and not the...

Washington Mutual Settles Class Action Lawsuit For $208.5 Million

LOS ANGELES - (AP) Washington Mutual Inc. and its fellow defendants have agreed to pay $208.5 million to settle a class-action lawsuit stemming from the lender's collapse in 2008, the biggest U.S. bank failure in history. The defendants and lead plaintiff Ontario Teachers' Pension Plan Board...

Securities Litigation This Week: U.S., UK Courts hand Down Sentences For Securities Fraud

The price of gold continues to spiral upward this week while the European banking crisis continued. As the crisis has unfolded European regulators took steps to preclude the short sale of shares in financial institutions. At the same time FINRA issued an investor warning cautioning the public regarding...

Securities Fraud Class Action Dismissed Under Heightened Pleading Rules

The U.S. Third Circuit Court of Appeals in City of Roseville Employees' Retirement System v. Horizon Lines, Inc., et al. , Case No. 10-2788, on August 24, 2011, in a 2-to-1 decision, read opinion here [ an enhanced version of this opinion is available to lexis.com subscribers ], affirmed the...

Supreme Court To Hear Appeal In Market Timing Case

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on Sept. 25 agreed to hear an appeal of a Second Circuit U.S. Court of Appeals ruling allowing the Securities and Exchange Commission to seek penalties against defendants for securities fraud for conduct that was not fraudulently concealed and...

U.S. Supreme Court Hears Oral Argument In Market Timing Case

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on Jan. 8 heard oral arguments in an appeal of a Second Circuit U.S. Court of Appeals ruling allowing the Securities and Exchange Commission to seek penalties against defendants for securities fraud for conduct that was not fraudulently concealed...

High Court Says Discovery Rule Doesn't Apply To Securities And Exchange Commission

WASHINGTON, D.C. -- (Mealey's) The U.S. Supreme Court on Feb. 27 reversed a Second Circuit U.S. Court of Appeals ruling allowing the Securities and Exchange Commission to seek securities fraud penalties for conduct that had ceased more than five years before the SEC brought the lawsuit, saying that...

Securities Class Action Lawsuits Against Life Sciences Companies Rose In 2012

The number of securities class action lawsuits filed against life sciences companies rose in both absolute and relative terms in 2012, according to a March 20, 2013 memorandum by David Kotler of the Dechert law form entitled "Survey of Securities Fraud Class Actions Brought Against U.S. Life Sciences...

SEC Reaches Settlement With Pennsylvania City Over Federal Securities Law Violations

WASHINGTON, D.C. - (Mealey's) The Securities and Exchange Commission and the City of Harrisburg, Pa., have agreed to a cease-and-desist order preventing the city from continuing its violation of federal securities laws in connection with statements it made both publicly and in financial documents...

Medical Device Manufacturer To Pay $30M For Role In Securities Fraud Scheme

WASHINGTON, D.C. — (Mealey’s) Medical device manufacturer ArthroCare Corp. will pay a $30 million monetary penalty to settle claims that certain of its senior executives engaged in a securities fraud scheme that bilked the company’s shareholders out of more than $400 million, according...

Williams Mullen: Defeating Class Certification: Halliburton II Ruling Impacts Securities Class Action Issues

By Turner A. Broughton and Lauren M. Wheeling In its June 23, 2014 opinion in Halliburton Co. v. Erica P. John Fund, Inc. (“ Halliburton II ”), the United States Supreme Court addressed two securities class action issues[ enhanced opinion available to lexis.com subscribers. : lexis.com...