LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - Lead Plaintiff In Securities Class Action Failed To Plead Scienter, Judge Rules

SAN JOSE, Calif. - Dismissal of a securities class action lawsuit is proper, a federal judge in California ruled April 27, because the lead plaintiff in the action failed to properly plead scienter in stating his federal securities law claims (Tai Jan Bao, et al. v. SolarCity Corp., et al., No. 14-1435...

Mealey's Securities/D&O Liability - Panel: Lead Plaintiffs In Securities Suit Failed To Plead Loss Causation

ATLANTA - A federal district court judge did not err in dismissing a securities class action lawsuit because, despite having numerous opportunities to amend their complaint, the lead plaintiffs still failed to properly plead loss causation, a divided 11th Circuit U.S. Court of Appeals panel ruled May...

Mealey's Securities/D&O Liability - Judge: Investors' Claims Duplicative, Derivative Of Madoff Trustee Suit

NEW YORK - A federal bankruptcy court did not err in preventing investors from filing a second amended complaint in a lawsuit connected to Bernard L. Madoff's massive Ponzi scheme, because investors' claims were duplicative and derivative of a suit already brought by Madoff's liquidation...

Mealey's Securities/D&O Liability - Judge Denies Leave To Amend In Securities Class Action Lawsuit

COVINGTON, Ky. - A federal judge in Kentucky on May 12 denied a lead plaintiff's motion to alter or amend its judgment or grant leave to amended a complaint in a securities class action lawsuit, ruling that amendment is not proper because the lead plaintiff failed to formally request leave to amend...

Mealey's Securities/D&O Liability - New York Federal Judge Won't Allow Investors To Depose Madoff

NEW YORK - A federal judge in New York on May 11 denied a petition to depose convicted Ponzi scheme mastermind Bernard L. Madoff, ruling that investors who lost their life savings in Madoff's massive Ponzi scheme have failed to meet the statutory requirements for filing such a petition (Susanne Stone...

Mealey's Securities/D&O Liability - Judge: Lead Plaintiffs Failed To Plead Actionable Misstatement, Scienter

KANSAS CITY, Kan. - A federal judge in Kansas on May 14 dismissed a securities class action complaint, ruling that lead plaintiffs in the action failed to plead an actionable misstatement and scienter in making their federal securities law claims (Wayne E. Anderson v. Spirit AeroSystems Holdings Inc...

Mealey's Securities/D&O Liability - High Court Says Trust Law Informs Limitations Question In Imprudent Retention Case

WASHINGTON, D.C. - The U.S. Supreme Court ruled in a unanimous opinion on May 18 that the Ninth Circuit U.S. Court of Appeals erred in holding that Employee Retirement Income Security Act Section 413(1) bars breach of fiduciary duty claims based on the fiduciaries' initial selection of plan investments...

Mealey's Securities/D&O Liability - High Court Won't Hear Appeal In NVIDIA Securities Class Action

WASHINGTON, D.C. - The U.S. Supreme Court on May 26 declined to hear an appeal in a securities class action lawsuit accusing NVIDIA Corp. and its CEO of concealing problems certain of its products in violation of federal securities laws (Roberto Cohen v. NVIDIA Corp., et al., No. 14-975, U.S. Sup.).

Mealey's Securities/D&O Liability - High Court Vacates Ruling In Securities Suit, Remands For Further Review

WASHINGTON, D.C. - The U.S. Supreme Court on June 8 granted a petition for writ of certiorari in a securities class action lawsuit seeking determination of whether, pursuant to Section 11 of the Securities Act of 1933, a plaintiff must show not only that an opinion contained false and misleading statements...

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

PASADENA, Calif. - A federal judge in California did not err in dismissing claims in a securities class action lawsuit because the lead plaintiff in the action failed to plead a material misrepresentation or scienter, a Ninth Circuit U.S. Court of Appeals panel ruled June 5 (Fresno County Employees'...

Mealey's Securities/D&O Liability - Judge Grants Preliminary Approval Of $1.95M Securities Class Action Settlement

BROOKLYN, N.Y. - A federal judge in New York on June 5 adopted a federal magistrate's report and recommendation that the federal judge grant preliminary approval of a settlement in a securities class action lawsuit, ruling that adopting the report and recommendation was proper because neither party...

Mealey's Securities/D&O Liability - 5th Circuit Affirms Exclusion Of Testimony In Ponzi Scheme Trial

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on June 5 affirmed wire fraud and conspiracy convictions and 20-year prison sentences for two employees of investment companies of Ponzi scheme operator R. Allen Stanford, finding in part that the trial court did not commit harmful error in excluding...

Mealey's Securities/D&O Liability - Judge Denies Motion For Reconsideration In Securities Class Action

NEW YORK - A federal judge in New York on June 5 denied motions for reconsideration filed by defendants in a securities class action lawsuit, ruling that the defendants' arguments fail as a matter of law (In re BioScrip Inc. Securities Litigation, No. 13-6922, S.D. N.Y.; 2015 U.S. Dist. LEXIS 73484...

Mealey's Securities/D&O Liability - JPMDL Consolidates Alibaba Securities Suits In New York Federal Court

WASHINGTON, D.C. - The Judicial Panel on Multidistrict Litigation on June 9 transferred two securities class action lawsuits to the U.S. District Court for the Southern District of New York and consolidated the actions with four similar actions already filed in the District Court, ruling that the actions...

Mealey's Securities/D&O Liability - Panel: Judge Properly Rejected Objection To Securities Settlement

NEW YORK - A federal district court did not err in rejecting a shareholder's objection to a securities class action lawsuit settlement because the settlement notice was adequate and the attorney fee award was "acceptable," a Second Circuit U.S. Court of Appeals panel ruled June 10 (J. Robert...

Mealey's Securities/D&O Liability - Panel: Court Did Not Err In Finding Amendment Futile In Securities Suit

NEW YORK - A federal judge did not err in denying lead plaintiffs the chance to amend their complaint in a securities class action lawsuit because amendment was futile, a Second Circuit U.S. Court of Appeals panel ruled June 15 (NECA-IBEW Pension Trust Fund, et al. v. Kenneth D. Lewis, et al., No. 14...

Mealey's Securities/D&O Liability - Judge Grants Motion To Expand Class Period In Securities Class Action

LAS VEGAS - Lead plaintiffs in a securities class action have properly shown that expanding the class period is proper pursuant to U.S. Supreme Court precedent and Federal Rule of Civil Procedure 23(b)(3), a federal judge in Nevada ruled June 15 (Frank J. Fosbre Jr. v. Las Vegas Sands Corp., et al.,...

Mealey's Securities/D&O Liability - High Court Grants 30-Day Extension To Government To File Newman Petition

WASHINGTON, D.C. - The U.S. Supreme Court on June 16 granted U.S. Solicitor General Donald B. Verrilli Jr. a 30-day extension to file a petition for writ of certiorari with the court in an insider trading lawsuit to review the Second Circuit U.S. Court of Appeals' ruling in the case (United States...

Mealey's Securities/D&O Liability - Judge: Federal Securities Law Claims In Angie's List Class Action Are Too Vague

INDIANAPOLIS - Dismissal of claims in a securities class action lawsuit is proper, a federal judge in Indiana ruled June 18, because the lead plaintiff's securities fraud claims "are simply too vague and attenuated to withstand the heightened pleading requirements" (Eva and Harold Baron...

Mealey's Securities/D&O Liability - Judge: Bifurcation Of Discovery In Securities Suit Will Lead To Delays

FAYETTEVILLE, Ark. - A federal judge in Arkansas on June 19 denied a motion to sequence class and merits discovery in a securities class action lawsuit, ruling that staying discovery will lead to "further delays and complications" in the litigation (City of Pontiac General Employees' Retirement...

Mealey's Securities/D&O Liability - Panel: Judge Properly Held That Investor Failed To Properly Plead Scienter

NEW YORK - A federal district court did not err in dismissing a securities class action lawsuit because the lead plaintiff failed to properly plead scienter and failed to show that a number of his claims were subject to equitable tolling, a Second Circuit U.S. Court of Appeals panel ruled June 23 (In...

Mealey's Securities/D&O Liability - Federal Judge Sends Securities Class Action Back To State Court

SAN JOSE, Calif. - Remand of a securities class action suit to state court is proper because the defendants were prohibited from removing the action to federal court in the first place, a federal judge in California ruled June 25 (Alexander Liu v. Xoom Corp., et al., No. 15-0602, N.D. Calif.; 2015 U...

Mealey's Securities/D&O Liability - High Court To Hear Appeal Of 3rd Circuit 'Naked' Short Selling Securities Suit

WASHINGTON, D.C. - The U.S. Supreme Court on June 30 agreed to hear an appeal of a Third Circuit U.S. Court of Appeals ruling remanding a securities class action lawsuit over the alleged illegal "naked" short selling of a company's stock back to state court Merrill Lynch, Pierce, Fenner...

Mealey's Securities/D&O Liability - High Court Won't Hear Appeal In Qualified Immunity Defense Suit

WASHINGTON, D.C. - The U.S. Supreme Court on June 29 denied a defendant's request to review an 11th Circuit U.S. Court of Appeals ruling affirming denial his qualified immunity motion to dismiss a Securities and Exchange Commission lawsuit (Michael Boudreaux v. Securities and Exchange Commission...

Mealey's Securities/D&O Liability - Supreme Court Denies Review Of Fiduciary Duty In ERISA 401(k) Case

WASHINGTON, D.C. - The U.S. Supreme Court on June 29 declined to review a Fourth Circuit U.S. Court of Appeals ruling on the burden of proof on the issue of causation and the proper standard to assess causation in a 401(k) breach of fiduciary duty case under the Employee Retirement Income Security Act...