Mealey's Securities/D&O Liability - Investor Properly Pleaded Demand Futility In Derivative Lawsuit, Judge Rules

GREENBELT, Md. - A shareholder has properly pleaded demand futility on the part of a biopharmaceutical company's board of directors, a federal judge in Maryland ruled Sept. 5 in denying the defendants' motion to dismiss a shareholder derivative lawsuit (Georg Garnitschnig v. Zola P. Horovitz...

Mealey's Securities/D&O Liability - 2nd Circuit Panel Affirms Dismissal Of Securities Class Action Against Xerox

NEW YORK - A federal district court did not err in dismissing a securities class action lawsuit against Xerox Corp. and several of its executive officers because shareholders failed to plead any genuine dispute of material fact with regard to the sufficiency of Xerox's disclosures about the success...

Mealey's Securities/D&O Liability - Panel Affirms Ruling Denying Admission Of New Evidence In Securities Suit

NEW YORK - A federal district court did not abuse its discretion in determining that new evidence in a securities class action lawsuit would not have changed the outcome of an earlier ruling because the new evidence was nothing more than "mere commercial puffery," a Second Circuit U.S. Court...

Mealey's Securities/D&O Liability - Shareholders, Underwriters Reach $340M Settlement In Securities Class Action

NEW YORK - Shareholders and underwriters in a securities class action lawsuit stemming from IndyMac Bancorp's certificate offerings over a three-year period from 2005 to 2007 have agreed to settle all claims for $340 million, according to court documents filed Sept. 11 by the shareholders (In re...

Mealey's Securities/D&O Liability - Shareholder Failed To Plead Loss Causation, 9th Circuit Panel Rules

SAN FRANCISCO - A federal district court did not err in dismissing a securities class action lawsuit because a shareholder failed to properly plead loss causation, a Ninth Circuit U.S. Court of Appeals panel ruled Sept. 11 in an amended opinion (John P. Loos v. Immersion Corp., et al., No. 12-15100,...

Mealey's Securities/D&O Liability - High Court Orders Securities Class Action Parties To File Additional Briefing

WASHINGTON, D.C. - The U.S. Supreme Court on Sept. 23 issued an order requiring parties in a securities class action lawsuit against IndyMac MBS Inc. to file letter briefs addressing whether the case still needs to be heard due to a pending settlement agreement reached by the parties in federal district...

Mealey's Securities/D&O Liability - High Court Dismisses Securities Class Action Against IndyMac

WASHINGTON, D.C. - The U.S. Supreme Court on Sept. 29 dismissed an appeal in a securities class action lawsuit after receiving letter briefs from the involved parties stating that they would voluntarily dismiss the action if a settlement agreement is approved by a federal judge (Public Employees'...

Mealey's Securities/D&O Liability - Judge Denies Dismissal In Securities Class Action Against Wal-Mart, CEO

FAYETTEVILLE, Ark. - A federal judge in Arkansas on Sept. 26 accepted a federal magistrate judge's report and recommendation to deny a motion to dismiss in a securities class action lawsuit, rejecting objections filed by Wal-Mart Stores Inc. and its CEO over claims that they covered up a bribery...

Mealey's Securities/D&O Liability - Judge: Lead Plaintiff Failed To Plead Securities Claims With Particularity

SEATTLE - A federal judge in Washington on Oct. 6 granted motions to dismiss filed by defendants in a securities class action lawsuit, ruling that the lead plaintiff in the action lacks standing to bring certain claims and has failed to plead materiality and falsity with particularity for others (In...

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

NEW YORK - Defendants in a securities class action have failed to show that interlocutory appeal is appropriate because, among other things, they have not shown that any controlling question of law exists, a federal judge in New York ruled Oct. 7 (In re Goldman Sachs Group Inc. Securities Litigation...

Mealey's Securities/D&O Liability - Retirement Plan Named Lead Plaintiff In Securities Class Action Lawsuit

BOSTON - A federal judge in Massachusetts on Oct. 8 named a union retirement plan as lead plaintiff in a securities class action lawsuit against a biotechnology firm and certain of its current and former officers and directors, ruling that the retirement plan has met all statutory guidelines to become...

Mealey's Securities/D&O Liability - Lead Plaintiff Failed To Plead Scienter In Securities Class Action, Panel Rules

CINCINNATI - Although a lead plaintiff in a securities class action lawsuit properly pleaded a material misrepresentation and omission, it has failed to plead scienter and dismissal of its claims was proper, a Sixth Circuit U.S. Court of Appeals panel ruled Oct. 10 (In re Omnicare Inc. Securities Litigation...

Mealey's Securities/D&O Liability - Judge Rejects Motion To Vacate Ruling In Securities Class Action Lawsuit

NEW YORK - A federal judge in New York on Oct. 13 rejected lead plaintiffs' motion in a securities class action lawsuit to vacate a previous ruling based on their finding of new evidence, finding that the lead plaintiffs failed to bring the evidence at the time of the defendants' motion for reconsideration...

Mealey's Securities/D&O Liability - Investors Failed To Plead Demand Futility In Derivative Lawsuit, Judge Rules

SALT LAKE CITY - Investors in a shareholder derivative lawsuit have failed to plead demand futility because they have failed to show that a majority of a company's board of directors faces a substantial likelihood of liability, a federal judge in Utah ruled Oct. 9 in granting motions to dismiss ...

Mealey's Securities/D&O Liability - 2nd Circuit Denies Rehearing In Securities Class Action Against Deutsche Bank

NEW YORK - A Second Circuit U.S. Court of Appeals panel on Oct. 16 denied a motion for rehearing or, in the alternative, rehearing en banc in a securities class action against Deutsche Bank AG (DB) and certain of its subsidiaries and others, which were alleged to have misrepresented DB's exposure...

Mealey's Securities/D&O Liability - Judge: Board Did Not Act In Bad Faith In Denying Investor's Demand Letter

NEWARK, N.J. - A federal judge in New Jersey on Oct. 17 dismissed a shareholder derivative lawsuit, ruling that a company's board of directors did not act in bad faith or fail to properly investigate claims made when it denied an investor's demand letter (Dennis Palkon v. Stephen P. Holmes, et...

Mealey's Securities/D&O Liability - 11th Circuit: Shareholder Lacks Standing To Appeal Federal Securities Law Claims

ATLANTA - A shareholder in a securities class action lawsuit lacks standing to appeal dismissal of a federal securities law claim because it failed to bring the claim in federal district court, an 11th Circuit U.S. Court of Appeals panel ruled Oct. 24 (Greenfield Children's Partnership, et al. v...

Mealey's Securities/D&O Liability - Shareholders Failed To Properly Plead Scienter, Federal Judge Rules

BOSTON - Dismissal of a securities class action lawsuit is proper because shareholders have failed to properly plead the elements of scienter with regard to a company and certain of its executive officers, a federal judge in Massachusetts ruled Oct. 28 (Ryan M. Smith, et al. v. The First Marblehead Corp...

Mealey's Securities/D&O Liability - Securities Class Action Suit Dismissed After Investors Fail To Amend Complaint

SEATTLE - A federal judge in Washington on Oct. 30 dismissed a securities class action lawsuit against a breast cancer detection device maker and certain of its officers and directors in its entirety, ruling that shareholders failed to file an amended complaint within the timeframe set by the court ...

Mealey's Securities/D&O Liability - High Court Hears Oral Arguments In Securities Class Action Lawsuit

WASHINGTON, D.C. - The U.S. Supreme Court on Nov. 3 heard oral arguments in an appeal of a Sixth Circuit U.S. Court of Appeals ruling for a securities class action lawsuit where the parties seek a determination as to the proper pleading standard of Section 11 of the Securities Act of 1933 (Omnicare Inc...

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

LOS ANGELES - A federal judge in California on Nov. 3 certified a class of investors in a securities class action lawsuit against a clothing company and others over a merger deal, ruling that the lead plaintiff in the action has met all statutory guidelines for class certification (In re Hot Topic Inc...

Mealey's Securities/D&O Liability - Judge Denies Reconsideration In Securities Suit Related To Madoff Ponzi Scheme

NEW YORK - A federal judge in New York on Nov. 6 refused to reconsider his previous ruling in a shareholder derivative lawsuit dismissing the suit for failure to plead demand futility, ruling that no clear error in favor of reconsideration exists (Central Laborers' Pension Fund, et al. v. James Dimon...

Mealey's Securities/D&O Liability - 3rd Circuit Panel Remands Securities Suit To New Jersey State Court

PHILADELPHIA - A federal district court erred in ruling that a securities lawsuit should not be remanded to state court because no federal question jurisdiction exists over the lawsuit, a Third Circuit U.S. Court of Appeals panel ruled Nov. 10 (Gregg Manning, et al. v. Merrill Lynch Pierce Fenner &...

Mealey's Securities/D&O Liability - High Court Denies Certiorari In Insider Trading Suit; Justice Writes Statement

WASHINGTON, D.C. - The U.S. Supreme Court on Nov. 10 declined review of an insider trading conviction, and Justice Antonin Scalia issued a three-page statement asking for a case to be brought to the Supreme Court that addresses the extent of the Securities and Exchange Commission's power to interpret...

Mealey's Securities/D&O Liability - Feeder Funds To Pay Nearly $500M To Madoff Liquidation Trustee

NEW YORK - Two feeder funds of Bernard L. Madoff Investment Securities LLC (BLMIS) will pay nearly $500 million to settle all claims associated with their role in Madoff's massive Ponzi scheme, according to court documents filed Nov. 17 in New York federal bankruptcy court (Securities Investor Protection...