Judge Dismisses Shareholder Derivative Suit Without Leave To Amend

SAN FRANCISCO - A federal judge in California dismissed a shareholder derivative suit against Wells Fargo & Co. on Dec. 6 because the shareholder failed to show that presuit demand upon the company's board of directors would have been futile (Richard Gulbrandsen, Derivatively on Behalf of Wells...

U.S. Bancorp To Pay $53M To Settle Repurchase Obligations With Freddie Mac

MINNEAPOLIS - U.S. Bancorp will pay $53 million in cash to Freddie Mac as part of an agreement between the parties to resolve "substantially all repurchase obligations related to representations and warranties made on loans sold to Freddie Mac between 2000 and 2008," the bank announced Dec...

Judge Dismisses Fraud Claims Against Bank Of America, Former CEO

NEW YORK - A federal judge in New York on Dec. 11 ruled that dismissal of a securities class action lawsuit against Bank of America Corp. (BofA) and its former CEO is proper because shareholders' state-law claims regarding BofA's acquisition of Merrill Lynch & Co. Inc. are precluded by the...

SEC Announces $131.8 Million Settlement With Merrill Lynch

WASHINGTON, D.C. - The Securities and Exchange Commission on Dec. 12 announced that Merrill Lynch, Pierce, Fenner & Smith Inc. has agreed to pay $131.8 million to settle claims that it made "faulty disclosures about collateral selection for two collateralized debt obligations (CDOs) that it...

Shareholders Say Presuit Demand On Company's Board Would Have Been Futile

CHICAGO - Shareholders that brought a shareholder derivative lawsuit against certain of a company's directors and officers told a federal court in Illinois on Dec. 16 that the circumstances of the directors' and officers' conduct show that presuit demand upon the company's board of directors...

Attorneys Awarded 16 Percent Of Settlement Fund In Securities Class Action

NEW YORK - A federal judge in New York on Dec. 19 ruled that although a law firm's request for attorney fees in a securities class action lawsuit against Citigroup Inc. and others was too high, the firm is still entitled to 16 percent of the overall settlement amount (In re Citigroup Inc. Bond Litigation...

Judge Approves Settlement Of Shareholder Derivative Lawsuit

AUSTIN, Texas - A federal judge in Texas on Jan. 2 approved the settlement of a shareholder derivative lawsuit and ordered the parties to file appropriate papers to achieve dismissal of the action (David H. Goodman v. Philippe Crevoisier, et al., No. 12-cv-01169, W.D. Texas).

Judge Says CVS Shareholders Properly Pleaded Material Misrepresentation, Scienter

PROVIDENCE, R.I. - Dismissal of a shareholder class action lawsuit challenging the merger that brought CVS Caremark Corp. together is not warranted because the shareholders have properly pleaded a material misrepresentation and scienter in making their federal securities law claims, a federal judge in...

Shareholder Derivative Suit Brought Against Angie's List Directors And Officers

INDIANAPOLIS - A claimed shareholder in Angie's List brought a derivative lawsuit on behalf of the company on Jan. 3 in an Indiana federal court, alleging that certain directors and officers of the company breached their fiduciary duties (Paul Korda, v. William S. Oesterle, et al., No. 14-cv-00004...

JPMorgan To Pay Record $1.7B To Settle Claims It Failed To Report Madoff Fraud

NEW YORK - JPMorgan Chase Bank NA has agreed to a civil forfeiture of a record $1.7 billion to settle claims that it violated provisions of the Bank Secrecy Act during its time as the primary bank for Bernard L. Madoff's massive Ponzi scheme, according to information released on Jan. 7 by federal...

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

WASHINGTON, D.C. - 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 to a press release issued...

Judge Denies New Trial For Former Goldman VP Convicted Of Securities Fraud

NEW YORK - A federal judge in New York on Jan. 7 denied a motion for judgment as a matter of law or, in the alternative, for a new trial filed by former Goldman Sachs & Co. Vice President Fabrice Tourre, ruling that none of Tourre's arguments in favor of his motion has any merit (Securities and...

11th Circuit Rejects Cross-Appeal In Bank Insurance Coverage Case

ATLANTA - The 11th Circuit U.S. Court of Appeals on Jan. 7 dismissed St. Paul Mercury Insurance Co.'s cross-appeal in a dispute regarding whether it has to cover suits brought by the Federal Deposit Insurance Corp. against a failed bank's directors and officers, determining that St. Paul does...

Judge Certifies Class In Securities Suit Against Gas And Oil Company

SANTA ANA, Calif. - A federal judge in California on Jan. 6 certified a class of investors in a securities class action lawsuit against a natural gas and oil company alleged to have issued misrepresentations in proxy statements used as part of a series of mergers in violation of federal securities laws...

Shareholder Says JPMorgan Directors, Officers Breached Their Fiduciary Duties

SACRAMENTO, Calif. - An alleged shareholder sued JPMorgan Chase & Co. in a California federal court on Jan. 7, claiming that certain of JPMorgan's directors and officers breached their fiduciary duties regarding the creation and sale of subprime residential mortgage-backed securities (Joliet...

High Court Invites Solicitor General To File Brief In Madoff Ponzi Scheme Suit

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 13 invited U.S. Solicitor General Donald B. Verrilli Jr. to file a brief expressing the views of the United States in a securities lawsuit against a number of parties that failed to properly investigate Bernard L. Madoff's massive Ponzi scheme (Irving...

Shareholder Says Company's Board Of Directors Improperly Rejected Demand

CINCINNATI - A shareholder told a federal court in Ohio on Jan. 13 that a company's board of directors wrongly refused the shareholder's demand that the board of directors instigate a litigation against certain of the company's directors and officers (Alan Brosz v. Steven S. Fishman, et al...

Directors And Officers And Others Say Guernsey Law Governs Shareholder Suit

NEW YORK - A Guernsey investment fund's directors and officers and others told a New York federal court on Jan. 13 that a purported shareholder derivative lawsuit should be dismissed because the alleged shareholders do not have standing to bring the suit under Guernsey law (Omega Overseas Partners...

Shareholder Says Company Directors, Officers Breached Their Fiduciary Duties

SAN JOSE, Calif. - A shareholder told a federal court in California on Jan. 13 that certain of a company's directors and officers breached their fiduciary duties by making improper and misleading statements about the health of the company despite knowing that demand for the company's products...

Directors And Officers Say Former Shareholder Has No Standing To Bring Suit

WILMINGTON, Del. - Certain of a company's directors and officers told a federal court in Delaware on Jan. 16 that because the company has gone private, a now-former shareholder no longer has standing to bring a derivative lawsuit on behalf of the company (Philip Halpert, derivatively on behalf of...

Shareholders: Google Directors Are Not Impartial Regarding Demand Futility

OAKLAND, Calif. - Plaintiffs in a shareholder derivative lawsuit against Google directors and officers told a federal court in California on Jan. 16 that certain of the company's directors are not disinterested when it comes to considering demand that the board of directors bring a lawsuit against...

Alleged Shareholder Sues Western Union Directors, Officers

DENVER - A claimed shareholder in The Western Union Co. said in a federal court in Colorado on Jan. 19 that certain Western Union directors and officers breached their fiduciary duties by issuing or authorizing the issuance of false and misleading information regarding the company's financial prospects...

Target Directors And Officers Sued By Shareholder Over Data Security Breach

MINNEAPOLIS - A Target shareholder sued certain of the company's directors and officers in a federal court in Minnesota on Jan. 21, claiming that the directors and officers breached their fiduciary duties regarding the data security breach that took place over the recent holiday shopping season ...

Directors, Officers Counter Move Against Consolidation Of Derivative Suits

DENVER - A group of directors and officers named as defendants in a number of shareholder derivative lawsuits told a federal court in Colorado on Jan. 21 that the court properly ordered the consolidation of the suits (Thomas B. Wells v. Mark A. Smith, et al., No. 12-cv-00447, D. Colo.).

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...