SEC Files Another Investment Fund Fraud Lawsuit

Investment fund frauds continue to be a staple of SEC enforcement. This week the Commission filed another of these actions. The defendants are a former representative of a registered investment adviser and a licensed realtor. SEC v. Dearman, Civil Action No. CV-553 (N.D. Okla. Filed August 27, 2013)...

Securities Litigation Update For Aug. 9 – 30, 2013: Recent Outage At NASDAQ Focus Of Regulators

The recent outage at NASDAQ, the latest difficulty at an exchange, is a current focus of regulators. The SEC is investigating, reportedly examining the reasons a system for distributing stock quotes and prices was not adequate, according to a Reuters report (Reuters.com, Aug. 27, 2013). SEC Chair Mary...

The Week in Securities Litigation: Market Crisis Lawsuit, Olympus Case Enforcement Focus

DOJ’s market crisis suit against S&P and new charges against Olympus and a subsidiary in the UK are key focal points of securities enforcement litigation in this holiday shortened week. Responding to DOJ’s complaint, the rating agency claims it lacks merit and is driven by the fact that...

The Week In Securities Litigation: JP Morgan Settles London Whale Trading Charges

The Commission obtained its second settlement under its new policy which requires admissions in select, settling enforcement actions. This time JPMorgan settled books, records and internal control charges stemming from the so-called London Whale trading debacle. The settlement was based on admissions...

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...

Morgan Stanley To Settle Mortgage-Backed Securities Claims For $1.25B

NEW YORK — (Mealey’s) Morgan Stanley will pay $1.25 billion to settle claims that it, certain of its subsidiaries and others misrepresented the investment quality in more than $10.58 billion in certificates in connection with 33 securitizations of residential mortgage-backed securities Morgan...

This Is Real Law: Expert Witness Malpractice: Making The Case For—And Against—Civil Liability

Captain Corcoran was never, never sick at sea. Well, hardly ever —as audiences familiar with Gilbert and Sullivan’s beloved 1878 comic opera H.M.S. Pinafore know so well. Indeed, they eagerly await the moment early in the opera when, challenged in song by his gallant crew, the ship’s...

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...

DLA Piper: Expect Greater SEC Scrutiny Of Activist Hedge Funds That Share Information Or Collaborate In Advance Of Their Trades

By Perrie Michael Weiner and Patrick Hunnius A recent Wall Street Journal article – “Activist Investors Often Leak Their Plans to a Favored Few” – focused attention on “activist” investors and stock analysts who (as part of their bullish or bearish campaigns for...

Norton Rose Fulbright: Plaintiff Firms Continue Targeting Annual Meeting Proxies

By Gerard G. Pecht and Peter A. Stokes In what has become an annual rite of springtime, shareholder plaintiff lawyers are once again targeting Schedule 14A annual meeting proxy statements that include proposals on executive compensation, incentive plans, the authorization of additional shares, and...

Norton Rose Fulbright: 2d Circuit Dismisses Listing Theory Under Morrison

By Johannes K. Gabel , Manuela A. Siragy and Richard Werner Fagerer The Court of Appeals for the Second Circuit in its May 6 decision emphatically continued to interpret the Morrison v. National Australia Bank 1 doctrine broadly by confirming the District Court’s dismissal of a putative securities...

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...