Mealey's Securities/D&O Liability - High Court: SLUSA Does Not Preclude State Law Claims In Securities Suit

WASHINGTON, D.C. - The U.S. Supreme Court on Feb. 26 ruled that the Securities Litigation Uniform Standards Act of 1998 (SLUSA) does not preclude Latin American investors in Stanford Investment Bank (SIB) from bringing state law claims against SIB and SIB's insurance brokers and lawyers (Chadbourne...

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

NEW YORK - In a ruling made available on Feb. 26, a federal judge in New York dismissed federal securities law claims against an auditor for a Chinese company, ruling that claims that the auditor engaged in an illegal reverse merger scheme failed because the lead plaintiff did not properly plead scienter...

Mealey's Securities/D&O Liability - Societe Generale To Pay $122M To Settle Securities Claims

NEW YORK - Societe Generale has agreed to pay $122 million to settle claims that certain of its subsidiaries misrepresented the investment quality of certain residential mortgage-backed securities (RMBS) it and other financial institutions sold to Fannie Mae and Freddie Mac in violation of state and...

Mealey's Securities/D&O Liability - High Court To Hear Appeal In Omnicare Securities Class Action Lawsuit

WASHINGTON, D.C. - The U.S. Supreme Court on March 3 agreed to hear an appeal in a securities class action lawsuit, challenging whether a shareholder may allege only that a statement of opinion was objectively wrong under Section 11 of the Securities Act of 1933 or must the shareholder also allege that...

Mealey's Securities/D&O Liability - JPMorgan To Pay $400 Million To Settle Mortgage-Backed Securities Claims

NEW YORK - JPMorgan Chase & Co. will pay $400 million to settle claims that it misrepresented the risk involved with certain residential mortgage-backed securities (RMBS) that were insured by monoline insurer Syncora Guarantee Inc., according to a financial statement issued by Syncora on Feb. 28...

Mealey's Securities/D&O Liability - Magistrate Judge: SEC May Use Alternative Means To Serve Defendant

LAS VEGAS - A federal magistrate judge in Nevada on March 3 ruled that the Securities and Exchange Commission may use an alternative means to serve a defendant in an enforcement action who is living in Israel, because international law and the laws of Israel allow for such action (Securities & Exchange...

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

WASHINGTON, D.C. - The U.S. Supreme Court on March 5 heard oral arguments in a securities class action lawsuit seeking a determination as to whether the Supreme Court should overturn or limit its holding in Basic Inc. v. Levinson (485 U.S. 224 $(1988$)) (Halliburton Co., et al. v. Erica F. John Fund...

Mealey's Securities/D&O Liability - SEC Obtains Largest-Ever Monetary Sanction For Rule 105 Short Selling

WASHINGTON, D.C. - Defendants in a Securities and Exchange Commission enforcement action have agreed to pay a record $7.2 million to settle charges that they engaged in an illegal short-selling scheme in violation of Rule 105 of SEC Regulation M, according to a cease-and-desist order filed March 5 with...

Mealey's Securities/D&O Liability - Panel: Fund Failed To Plead Falsity, Scienter In Securities Class Action

SAN FRANCISCO - A federal district court judge did not err in dismissing a securities class action lawsuit, a Ninth Circuit U.S. Court of Appeals panel ruled March 7, holding that the lead plaintiff in the action failed to properly plead falsity and scienter, (David Applestein, et al. v. Medivation Inc...

Mealey's Securities/D&O Liability - Banks To Pay $885M To Settle Mortgage-Backed Securities Claims, FHFA Says

WASHINGTON, D.C. - Credit Suisse Holdings (USA) Inc., certain related companies and others have agreed to pay $885 million to settle claims that they violated state and federal securities laws in their offer and sale of mortgage-backed securities that were purchased by Fannie Mae and Freddie Mac, according...

Mealey's Securities/D&O Liability - 5 Former Madoff Employees Convicted For Roles In Massive Ponzi Scheme

NEW YORK - A federal jury on March 24 convicted five former employees of Bernard L. Madoff Investment Securities LLC (BLMIS) for their roles in perpetrating Madoff's massive Ponzi scheme (U.S. v. O'Hara, et al., No. 10-cr-0228, S.D. N.Y.).

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 - 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 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 - 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 - 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...