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...

Mealey's Securities/D&O Liability - Cornerstone Releases Accounting Class Action Filings, Settlements Report

LOS ANGELES - Even though the number of accounting class action filings remained "relatively consistent" at 47 filings in 2013, market capitalization losses associated with such cases saw a rise over 2012, according to a report issued April 29 by economic and financial consulting firm Cornerstone...

Mealey's Securities/D&O Liability - District Court Improperly Applied Inquiry Notice Standard, 11th Circuit Rules

ATLANTA - A federal district court erred in dismissing an investor lawsuit against their investment advisers for negligently investing in a feeder fund for Bernard L. Madoff's massive Ponzi scheme because the district court erred in applying the inquiry notice standard in its dismissal, an 11th Circuit...

Mealey's Securities/D&O Liability - First Horizon To Pay $110M To Settle Securities Lawsuit With FHFA

NEW YORK - First Horizon National Corp., certain of its subsidiaries and others will pay $110 million to settle claims that they violated state and federal securities laws in misrepresenting the investment quality of nearly $883 million in residential mortgage-backed securities that were sold to Fannie...

Mealey's Securities/D&O Liability - Kosmos Energy, Others To Pay $10.2M To Settle Securities Class Action Suit

DALLAS - Defendants in a securities class action lawsuit will pay $10.2 million to settle claims that they misrepresented the performance levels at an oil field, as well as its future expected performance, in violation of federal securities laws, according to court documents filed April 28 in Texas federal...

Mealey's Securities/D&O Liability - Judge: Best Buy Officer Not A Primary Violator In Securities Fraud Suit

MINNEAPOLIS - A federal judge in Minnesota on April 30 granted in part and denied in part a motion for judgment on the pleadings in a securities class action, ruling that shareholders have failed to show that an officer of Best Buy Co. Inc. acted as a primary violator in a securities fraud scheme (IBEW...

Mealey's Securities/D&O Liability - Judge Grants Preliminary Approval Of $280M Securities Class Action Settlement

CENTRAL ISLIP, N.Y. - A federal judge in New York on May 2 granted preliminary approval of a $280 million securities class action settlement between investors and J.P. Morgan Corp. affiliates and certain of their officers and directors for misrepresenting the investment quality of certain residential...

Mealey's Securities/D&O Liability - High Court's Ruling In Morrison Precludes Investor Claims, Panel Rules

NEW YORK - A federal district court did not err in dismissing a federal securities class action lawsuit, a Second Circuit U.S. Court of Appeals panel ruled May 6, because, among other things, the shareholders' claims were precluded under the U.S. Supreme Court's ruling in Morrison v. National...

Mealey's Securities/D&O Liability - Final Approval Of $2.5M Securities Class Action Settlement Granted

SANTA ANA, Calif. - A federal judge in California on May 6 granted final approval of a $2.5 million securities class action settlement, ruling that the settlement, as well as the lead plaintiffs' motion for attorneys' fees and costs were fair, adequate and reasonable (Vinh Nguyen v. Radient Pharmaceuticals...

Mealey's Securities/D&O Liability - SEC Issues Investor Alert Over Potential Bitcoin Investment Risk

WASHINGTON, D.C. - A certain level of risk is associated with investing in bitcoin and other forms of virtual currency of which investors must be aware, the Securities and Exchange Commission reported in an investor alert issued May 8.

Mealey's Securities/D&O Liability - Judge: Investor Failed To Plead Misrepresentation In Securities Class Action

LEXINGTON, Ky. - Dismissal of a securities class action lawsuit against a mattress manufacturer and distributor and certain of its executive officers is proper because a shareholder has failed to plead any material misrepresentations or omissions as required under the federal securities laws, a federal...

Mealey's Securities/D&O Liability - 2nd Circuit Panel Denies Rehearing In Madoff Feeder Fund Lawsuit

NEW YORK - Finding the U.S. Supreme Court's ruling in Chadbourne & Park LLP v. Troice to confirm both the "logic and holding" of a Second Circuit U.S. Court of Appeals' ruling in an Bernard L. Madoff Investment Securities LLC (Madoff Securities) feeder fund lawsuit, a Second Circuit...

Mealey's Securities/D&O Liability - Judge Won't Dismiss Federal Securities Law Claims In Merger Deal Class Action

NEW YORK - A federal judge in Florida on May 30 substantially denied defendants' motions to dismiss a securities class action lawsuit regarding the acquisition of a company, ruling that the shareholder that brought the suit has properly pleaded his claims and that the federal court has jurisdiction...

Mealey's Securities/D&O Liability - Panel Overturns Order Rejecting $285M Settlement Between SEC, Citigroup

NEW YORK - A Second Circuit U.S. Court of Appeals panel on June 4 vacated a federal judge's order rejecting the Securities and Exchange Commission's $285 million proposed settlement with Citigroup Global Markets Inc. over alleged misstatements made regarding the investment quality of a collateralized...

Mealey's Securities/D&O Liability - RBS To Pay $99.5M To Settle Claims In Fannie Mae, Freddie Mac Lawsuits

NEW YORK - Royal Bank of Scotland Securities Inc. (RBSSI) on June 19 agreed to pay $99.5 million to settle claims that it violated state and federal securities laws by misrepresenting the investment quality of residential mortgage-backed securities it underwrote that were subsequently sold to Fannie...

Mealey's Securities/D&O Liability - Panel: Injunctive Relief, Civil Penalties Warranted In Insider Trading Suit

NEW YORK - A federal district court did not err in granting injunctive relief and imposing treble civil penalties against former Goldman Sachs director Rajat K. Gupta for his role in an insider trading scheme because such actions were appropriate, a Second Circuit U.S. Court of Appeals panel ruled June...

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 - 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.).