Mealey's Securities/D&O Liability - 2nd Circuit Panel Affirms Gupta Conviction On Insider Trading Claims

NEW YORK - A Second Circuit U.S. Court of Appeals panel on March 25 affirmed a federal district court's conviction of former Goldman Sachs Group Inc. Board of Directors member Rajat K. Gupta, ruling that Gupta's arguments on appeal lack merit (United States of America v. Rajat K. Gupta, No. 12...

Mealey's Securities/D&O Liability - Directors And Officers Say Shareholder Has Failed To Prove Demand Futility

DENVER - A group of company directors and officers argued in a federal court in Colorado on March 24 that a shareholder's second amended complaint still fails to show that presuit demand upon the company's board of directors would have been futile (John Seni, Derivatively on Behalf of CIBER,...

Mealey's Securities/D&O Liability - Bank Of America To Pay $9.3B To Settle FHFA Securities Claims

WASHINGTON, D.C. - Bank of America Corp. on March 26 agreed to pay $9.3 billion to settle claims in four separate lawsuits that it, as well as Merrill Lynch & Co. and Countrywide Financial Corp., sold toxic, private-label, residential mortgage-backed securities (RMBS) to Fannie Mae and Freddie Mac...

Mealey's Securities/D&O Liability - Bank Of America, Former CEO To Pay $25M Over Merrill Nondisclosures

NEW YORK - Bank of America Corp. and its former CEO have agreed to pay $25 million to settle claims that they and others misrepresented the financial state of Merrill Lynch & Co. Inc. before merging with the financial giant in violation of New York state law, according to a press release issued March...

Mealey's Securities/D&O Liability - Securities Class Actions, Dollar Amounts Rose In 2013, Cornerstone Report Shows

BOSTON - Securities class action settlements saw a rise in both numbers and dollar amount, but the median settlement declined in 2013, according to a report released March 26 by economic and financial consulting firm Cornerstone Research.

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

KANSAS CITY, Kan. - A federal judge in Kansas on March 27 granted a motion for class certification filed by lead plaintiffs in a securities class action lawsuit, ruling that the lead plaintiffs have met all statutory guidelines for class certification (Cora E. Bennett v. Sprint Nextel Corp., et al.,...

Mealey's Securities/D&O Liability - Judge Dismisses Federal Securities Act Claim Against PricewaterhouseCoopers

MONTGOMERY, Ala. - Dismissal of federal securities act claims against auditor PricewaterhouseCoopers LLP (PwC) is proper because lead plaintiffs failed to plead a material misrepresentation, scienter or loss causation in making their claims, a federal judge in Alabama ruled March 27 in dismissing the...

Mealey's Securities/D&O Liability - Shareholder: Directors, Officers Failed To Maintain Adequate Internal Controls

SALT LAKE CITY - A purported shareholder in a company told a federal court in Utah on March 27 that certain of the company's directors and officers are responsible for allowing the company to operate an illegal scheme in China (Michael DuDash v. M. Truman Hunt, et al., No. 14-cv-00227, D. Utah).

Mealey's Securities/D&O Liability - Judge: Shareholders Failed To Show Demand Upon Board Would Have Been Futile

BOSTON - A federal judge in Massachusetts on March 26 granted certain of a company's directors' and officers' motion to dismiss a shareholder derivative lawsuit because the judge said the shareholders should have made a presuit demand asking the company's board to implement litigation...

Mealey's Securities/D&O Liability - Shareholder Failed To Properly Plead Scienter, 6th Circuit Panel Rules

CINCINNATI - A federal district court did not err in dismissing a securities class action lawsuit against a therapeutics company and certain of its executive officers because a shareholder failed to properly plead scienter, a Sixth Circuit U.S. Court of Appeals panel ruled March 28 (Paula Kuyat, et al...

Mealey's Securities/D&O Liability - 6th Circuit: Artificial- Inflation Causation Standard Applies In Stock-Drop Case

CINCINNATI - Participants in an employee stock ownership plan challenging the plan's fiduciaries' decision to continue investing in company stock failed to sufficiently plead causation under the Employee Retirement Income Security Act, the Sixth Circuit U.S. Court of Appeals affirmed March 26...

Mealey's Securities/D&O Liability - Shareholder's Claims Are Constitutionally Sufficient, 2nd Circuit Panel Rules

NEW YORK - A federal district court did not err in granting a shareholder's motion for certification as class representative in a securities class action lawsuit because his injuries are "constitutionally sufficient," a Second Circuit U.S. Court of Appeals panel ruled March 28 (Eli Bensinger...

Mealey's Securities/D&O Liability - Panel Sends Auction-Rate Securities Arbitration Ruling Back To District Court

SAN FRANCISCO - In a split opinion, a Ninth Circuit U.S. Court of Appeals panel on March 31 reversed and remanded a federal district court's ruling that a city's filing of claims against its underwriter of auction-rate securities (ARSs) with the Financial Industry Regulatory Authority (FINRA...

Mealey's Securities/D&O Liability - Hewlett-Packard To Pay $57M To Settle Securities Class Action Claims

SANTA ANA, Calif. - Hewlett-Packard Co. (HP) and certain of its current and former executive officers have agreed to pay $57 million to settle claims that they misrepresented the company's business condition in violation of federal securities laws, according to a motion for preliminary approval of...

Mealey's Securities/D&O Liability - Shareholder Lacks Standing To Bring Federal Securities Law Claims, Judge Rules

BOSTON - Dismissal of a shareholder class action lawsuit against a biotechnology company and certain of its officers and directors is proper because the lead plaintiff in the action lacks standing to bring its federal securities law claims, a federal judge in Massachusetts ruled March 31 (City of Bristol...

Mealey's Securities/D&O Liability - Investors Pleaded Securities Law Claims Against Certain Defendants, Judge Rules

NEW YORK - A federal judge in New York on March 31 granted in part and denied in part a motion to dismiss filed by JPMorgan Chase & Co. and certain of its current and former executive officers, ruling that lead plaintiffs have properly pleaded scienter and a material misrepresentation against certain...

Mealey's Securities/D&O Liability - Securities Class Action Lawsuit Against News Corp., Others Dismissed

NEW YORK - A federal judge in New York on March 31 granted several motions to dismiss filed by defendants in a securities class action lawsuit stemming from the News Corp. phone-hacking scandal in the United Kingdom, ruling that a pension fund has failed to plead personal jurisdiction over certain defendants...

Mealey's Securities/D&O Liability - Directors, Officers: Allegedly Former Shareholder Lacks Standing To Bring Suit

DAYTON, Ohio - Defendants in a shareholder derivative lawsuit claimed April 2 that a plaintiff was not a shareholder in the company on the date he brought the suit and, therefore, he lacks standing to sue derivatively on behalf of a corporation (J. Robert Smith v. Peter C. Wallace, et al., No. 12-cv...

Mealey's Securities/D&O Liability - Nortel's Canadian Affiliate: Stay Should Not Be Changed To Allow Litigation

WILMINGTON, Del. - Nortel Networks Corp. (NNC), the Canadian entity that filed a Chapter 15 bankruptcy proceeding in the U.S. Bankruptcy Court for the District of Delaware in conjunction with the Chapter 11 bankruptcy petition that was filed by its parent company Nortel Networks Inc. (NNI), on April...

Mealey's Securities/D&O Liability - Overseas Shipholding Plan 'Fails To Provide Sufficient' Information, Creditors Say

WILMINGTON, Del. - A group of creditors who are also securities claimants in separate litigation related to the Chapter 11 bankruptcy of Overseas Shipholding Group Inc. (OSG) on April 4 filed a brief in the U.S. Bankruptcy Court for the District of Delaware opposing OSG's motion seeking approval...

Mealey's Securities/D&O Liability - Judge Says Directors Did Not Breach Their Fiduciary Duties

CHICAGO - A federal judge in Illinois on April 7 granted certain of a company's directors' and officers' motion to dismiss a shareholder derivative lawsuit because the alleged breaches of fiduciary duty were the product of valid business judgment (Jan Donnawell v. Daniel Hamburger, et al...

Mealey's Securities/D&O Liability - Shareholder Says Directors And Officers Violated Patents

SAN JOSE, Calif. - A purported shareholder told a federal court in California on April 7 that certain directors and officers of an electronics company breached their fiduciary duties by willfully infringing on certain patents (Lee Voss v. Sehat Sutardja, et al., No. 14-cv-01581, N.D. Calif.).

Mealey's Securities/D&O Liability - Judge Denies Dismissal Motions In Securities Class Action Lawsuit

BOSTON - A federal judge in Massachusetts on April 7 denied motions to dismiss in a securities class action lawsuit, ruling that lead plaintiffs have properly pleaded their federal securities law claims at this point in the litigation (Silverstrand Investments, et al. v. AMAG Pharmaceuticals Inc., et...

Mealey's Securities/D&O Liability - Vice Chancellor Says Trial Is Appropriate In Suit Against Directors And Officers

WILMINGTON, Del. - A Delaware vice chancellor on April 8 denied a motion for summary judgment and said evidence regarding accusations brought by shareholders against certain of a company's directors and officers should be developed at trial (Herbert Chen, et al. v. Robert Howard-Anderson, et al....

Mealey's Securities/D&O Liability - Panel Affirms Dismissal In Stanford Ponzi Scheme Investor Suit Against SEC

NEW ORLEANS - Dismissal of an investor lawsuit against the Securities and Exchange Commission was proper, a Fifth Circuit U.S. Court of Appeals panel ruled April 14, because the investors' claims fall under the discretionary function exception of the Federal Tort Claims Act (FTCA) (Reuel Anderson...