Mealey's Securities/D&O Liability - Federal Judge Certifies Class In Securities Class Action Lawsuit

WILMINGTON, Del. - A federal judge in Delaware on June 18 granted a motion by shareholders to certify a class and appoint lead and liaison counsel in a securities class action lawsuit, ruling that the class has met all statutory guidelines for approval (Robert Skeway, et al. v. China Natural Gas Inc...

Mealey's Banking & Finance - Supreme Court Refuses To Overrule Basic Presumption In Securities Fraud Suits

WASHINGTON, D.C. - The U.S. Supreme Court on June 23 found that Halliburton Co. has not shown a "special justification" for overruling the reliance presumption of Basic v. Levinson (485 US. 224, U.S. Sup. [1988]) in securities fraud cases (Halliburton Co., et al. v. Erica F. John Fund Inc....

Mealey's Banking & Finance - 2nd Circuit Affirms Dismissal Of Class Suit Against BlackBerry Maker

NEW YORK - The Second Circuit U.S. Court of Appeals on June 19 affirmed the dismissal of a securities fraud class action against BlackBerry maker Research In Motion Ltd. (RIM), finding that the plaintiffs' allegations were not sufficient to plead scienter (Laura Prefontaine v. Research In Motion...

Mealey's Banking & Finance - SEC Moves For Approval Of Judgment In Suit Against Attorney

MIAMI - The Securities and Exchange Commission on June 20 asked a Florida federal court to approve a judgment requiring an attorney and associated entities to pay more than $3.5 million to settle allegations that they had a role in a scheme that defrauded investors of millions of dollars (Securities...

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...

Mealey's Securities/D&O Liability - High Court Grants Cert, Remands Case In Light Of Fifth Third Bancorp

WASHINGTON, D.C. - The U.S. Supreme Court on June 30 granted certiorari, vacated judgment and remanded a Ninth Circuit U.S. Court of Appeals decision in a case arising under the Employee Retirement Income Security Act light of the high court's recent presumption of prudence ruling in Fifth Third...

Mealey's Securities/D&O Liability - Supreme Court Won't Revive AIG Shareholder Suit

WASHINGTON, D.C. - The U.S. Supreme Court on June 30 declined to revive a shareholder lawsuit against the Federal Reserve Bank of New York (FRBNY) alleging that FRBNY used its control over American International Group Inc. (AIG) in connection with a transaction involving AIG's credit default swap...

Mealey's Securities/D&O Liability - High Court Declines To Review Madoff Ponzi Scheme Suit

WASHINGTON, D.C. - The U.S. Supreme Court on June 30 declined to hear an appeal in a lawsuit against a number of parties that failed to properly investigate Bernard L. Madoff's massive Ponzi scheme (Irving H. Picard v. JPMorgan Chase & Co., et al., No. 13-448, U.S. Sup.).

Mealey's Securities/D&O Liability - High Court Grants Cert, Remands Cases In Light Of Fifth Third Bancorp

WASHINGTON, D.C. - The U.S. Supreme Court on July 1 granted certiorari, vacated judgments and remanded two stock-drop cases arising under the Employee Retirement Income Security Act, one each to the Second and Fifth Circuits U.S. Court of Appeals, in light of the high court's recent presumption-of...

Mealey's Securities/D&O Liability - Citigroup To Pay $7B To Settle Mortgage-Backed Securities Claims

WASHINGTON, D.C. - Citigroup Inc. will pay $7 billion to the Department of Justice and other state and federal agencies to settle claims that it misrepresented the investment quality of mortgage-backed securities it packaged, securitized, marketed, sold and issued prior to Jan. 1, 2009, according to...

Mealey's Securities/D&O Liability - 2nd Circuit Denies Rehearing For Gupta On Insider Trading Conviction

NEW YORK - The Second Circuit U.S. Court of Appeals on July 14 ruled that it will not rehear an appeal filed by former Goldman Sachs Group Inc. board of directors member Rajat K. Gupta regarding his conviction for insider trading (United States of America v. Rajat K. Gupta, No. 12-4448, 2nd Cir.; 2014...

Mealey's Securities/D&O Liability - 9th Circuit Affirms Dismissal Of Securities Class Action Lawsuit

SAN FRANCISCO - A federal district court did not err in dismissing a shareholder's amended securities class action complaint against a robotic surgical devices maker and certain of its executive officers because the shareholder failed to state a claim for relief or properly plead scienter (Police...

Mealey's Securities/D&O Liability - Federal Judge Rules That Shareholder's Securities Law Claim Is Time-Barred

BROOKLYN, N.Y. - A federal judge in New York on July 14 dismissed a shareholder's federal securities law claim against a company alleged to have misrepresented certain information as part of a merger deal, ruling that the shareholder's claim is time-barred (Eli Bensinger, et al. v. Denbury Resources...

Mealey's Securities/D&O Liability - Panel Affirms Dismissal In Securities Suit Against Deutsche Bank, Others

NEW YORK - A federal district court judge did not err in dismissing a shareholder class action lawsuit against Deutsche Bank AG and certain of its subsidiaries and others because the lead plaintiffs in the action failed to state a claim for relief, a Second Circuit U.S. Court of Appeals panel ruled July...

Mealey's Securities/D&O Liability - Judge Grants In Part, Denies In Part Dismissal In Securities Class Action

NEW YORK - Without providing further opinion, a federal judge in New York on July 15 granted in part and denied in part a motion to dismiss filed by Goldman Sachs & Co. and others in a securities class action lawsuit regarding Goldman's alleged misrepresentations pertaining to the financial condition...

Mealey's Securities/D&O Liability - Lloyds To Pay $370M To Settle Libor Manipulation Claims In U.S., U.K.

WASHINGTON, D.C. - Lloyds Banking Group plc has agreed to pay a total of $370 million to settle claims with U.S. and British agencies alleging that Lloyds violated various laws by manipulating the London Interbank Offered Rate (Libor), according a press release issued by the Department of Justice on...

Mealey's Securities/D&O Liability - Judge: Forensic Sampling May Be Appropriate In Consolidated Securities Lawsuits

NEW HAVEN, Conn. - Although a Connecticut federal judge on Aug. 4 saw the value in conducting forensic in several residential mortgage-backed securities (RMBS), which comprise thousands of mortgages, he declined to issue a definitive ruling and denied a trust's motion to expedite the matter and conduct...

Mealey's Securities/D&O Liability - 4th Circuit Remands Fiduciary Duty Case Involving Diversification Of Plan Assets

RICHMOND, Va. - The Fourth Circuit U.S. Court of Appeals ruled 2-1 on Aug. 4 that a federal judge applied the wrong causation standard to claims by participants in R.J. Reynolds Tobacco Co.'s 401(k) plan that the plan fiduciaries are monetarily liable for breaching their fiduciary duties under the...

Mealey's Securities/D&O Liability - Judge Won't Dismiss Claims In Securities Class Action Lawsuit

LOS ANGELES - Dismissal of a shareholder class action lawsuit is not proper, a federal judge in California ruled in an order made available on Aug. 13, because shareholders have properly pleaded a material misrepresentation and scienter (David M. Loritz, et al. v. Exide Technologies, et al., No. 13-2607...

Mealey's Securities/D&O Liability - Lead Plaintiff Properly Pleaded Securities Law Claims, Federal Judge Rules

ATLANTA - A federal judge in Georgia on Aug. 13 refused to dismiss a shareholder class action lawsuit against a therapeutic biomaterials developer and certain of its executive officers, ruling that the lead plaintiff in the action had properly pleaded all elements of his federal securities law claims...

Mealey's Securities/D&O Liability - Lead Plaintiffs Properly Pleaded Scienter In Securities Suit, Judge Rules

SAN FRANCISCO - Dismissal of a securities class action lawsuit is not warranted because the lead plaintiff in the action has properly pleaded scienter, a federal judge in California ruled in an opinion made available on Aug. 15 (Scott Bruce v. Suntech Power Holdings Co. Ltd., et al., No. 12-4061, N.D...

Mealey's Securities/D&O Liability - Judge Gives Final Approval To $62.5M Securities Class Action Settlement

MINNEAPOLIS - A federal judge in Minnesota on Aug. 18 granted final approval of a $62.5 million settlement on shareholder claims that Wells Fargo N.A. failed to ensure that certain funds that were part of a securities-lending program were not high-risk and long-term investments in violation of several...

Mealey's Securities/D&O Liability - Judge Certifies Securities Class Action Against Chinese Media Company

NEW YORK - A group of plaintiffs alleging securities fraud by a Chinese television advertising firm have met the class certification requirements of Federal Rule of Civil Procedure 23, a New York federal judge found Aug. 15, granting a motion to certify the proposed class and denying a defendant's...

Mealey's Securities/D&O Liability - Bank Of America To Pay Nearly $17B Over Handling Of Subprime Mortgages

WASHINGTON, D.C. - Bank of America Corp. will pay nearly $17 billion to settle claims that it and its current and former subsidiaries, Countrywide Financial Corp. and Merrill Lynch, engaged in fraudulent activity with regard to their origination, underwriting and sale of subprime mortgages and mortgage...

Mealey's Securities/D&O Liability - Goldman Sachs To Pay $3B To Settle Claims It Sold Toxic Securities

NEW YORK - In an announcement made late on Aug. 22, Goldman Sachs & Co. said it will pay more than $3 billion to settle claims filed by the Federal Housing Finance Agency (FHFA) that it violated state and federal securities laws in its sale and packaging of residential mortgage-backed securities...