This Week In Securities Litigation (Week ending July 18, 2014)

The SEC’s insider trading probe regarding the House Ways and Means Committee and a senior staff member, also involves 44 investment funds and other entities, according to a Bloomberg news report citing recently filed court papers. The investigation is on-going. The Commission suffered another...

This Week in Securities Litigation (Week ending July 25, 2014)

The Commission issued its long discussed rules reforming money markets this week, requiring that institutional prime money market funds have a floating NAV. The vote was 3-2. In the Court of Appeals the SEC lost its effort to compel SIPIC to cover certain losses related to the Stamford Ponzi scheme...

This Week In Securities Litigation (Week ending August 1, 2014)

The Commission continued to focus on the markets this week, brining another action involving the operation of a partially dark pool. The ECN operator was a subsidiary of Citigroup. The SEC alleged that confidential customer information was used without permission. The SEC also brought another FCPA...

Second Circuit Vacates Dismissal of JinkoSolar Securities Suit

In an interesting July 31, 2014 opinion ( here ), the Second Circuit vacated the dismissal of the securities class action lawsuit that had been filed against JinkoSolar Holdings Co. Ltd, and certain of its directors and officers, as well as against its offering underwriters [an enhanced version of this...

Securities Suits Hit Firms Allegedly Using Stock Promoters to Boost Share Price

On July 30, 2014, when a plaintiff shareholder filed a securities class action lawsuit against the company and certain of its directors and officers, Galectin Therapeutics became the latest company to be hit with a securities suit following press reports that the company had used a stock promotion firm...

This Week In Securities Litigation (Week ending August 8, 2014)

This week the SEC brought an action this centered on hidden fees and a series of actions centered on microcap fraud and investment fund fraud. A pump and dump actions was filed centered on the manipulation of six different stocks since 2012. Investment fund actions were initiated based on allegations...

This Week In Securities Litigation (Week ending August 15, 2014)

The Commission prevailed in two litigated actions. In one the agency secured a favorable jury verdict in an action centered on misrepresentations made by an investment adviser who sought to move his book of business to a new entity. In the second, a jury returned a verdict in favor of the SEC in a microcap...

This Week In Securities Litigation (Week ending August 22, 2014)

The Second Circuit upheld SEC Rule 10b-5-2 which defines certain types of relationships as the predicate for insider trading. In reaching its conclusion the Court rejected an argument that an insider trading claim must be based on a breach of fiduciary duty. This week the Commission brought a second...

This Week in Securities Litigation (Week ending August 28, 2014)

In the roll-up to the Labor Day weekend, the SEC issued new rules regarding asset backed securities and credit rating agencies. The Commission also announced a new pilot program on tick size. SEC Enforcement brought four actions this week. One involved repeated insider trading by an investor relations...

This Week In Securities Litigation (Week ending September 5, 2014)

The Commission prevailed on summary judgment in an action against a broker which alleged he misappropriated client funds. The agency also filed actions centered on: an audit failure; the EB-5 immigration program; undisclosed conflicts; a failure to have supervisory procedures regarding known conflicts;...

This Week in Securities Litigation (Week ending September 12, 2014)

The SEC continued with its “broken windows” approach to enforcement this week, filing a group of 34 actions based on the failure to file either a Form 4, Schedule 13D or Schedule 13G. The agency also filed an action alleging that a bank failed to properly disclose its non-accruing loans,...

This Week In Securities Litigation (Week ending September 19, 2014)

The Commission continued with broken windows this week. Twenty Rule 105 short selling cases were filed in a group. Last week another group of broken window type cases was filed based on the failure to file Form 4s and Schedule 13Ds. In addition, the SEC brought cases centered on a pump and dump scheme;...

This Week in Securities Litigation (Week ending September 26, 2014)

The Commission announced its largest whistleblower action this week – an award to a person overseas of over $30 million. The agency also filed a series of actions this week. They included three insider trading case, two as administrative proceedings; two financial fraud actions; a SOX claw back...

This Week in Securities Litigation (Week ending October 2, 2014)

As the government fiscal year drew to a close, the SEC continued what appears to be an emerging trend of filing insider trading actions as administrative proceedings rather than civil injunctive actions in Federal Court. The Manhattan U.S. Attorney’s Office also got back on track, prevailing in...

This Week in Securities Litigation (Week ending October 10, 2014)

The Fifth Circuit decided a significant case on loss causation. The Court concluded that the truth could emerge from a series of disclosures which, in and of themselves were not sufficient to uncover the fraud, but which when considered together were adequate. The SEC, after emptying out the pipeline...

Advisen Releases Third Quarter Corporate and Securities Claims Trends Report

Continuing an recent downward trend, corporate and securities litigation filings during the third quarter declined, both compared to the prior quarter and compared to the third quarter last year, according a new report from Advisen, the insurance information firm. In its report, entitled “D&O...

This Week in Securities Litigation (Week ending October 17, 2014)

The Commission prevailed in three litigated decisions. The agency secured a favorable jury verdict in an action centered on an offering fraud. In two other cases — one based on misrepresentations regarding the only company product and a second alleging an investment fund fraud – the SEC prevailed...

A Whole Bunch of Interesting Litigation and Enforcement Statistics and Analyses

A single case may involve a host of interesting issues but sometimes the important lessons can only be discerned when many cases are considered collectively. This past week saw the release of some interesting analyses of aggregate litigation and enforcement statistics, each set of which told some interesting...

This Week in Securities Litigation (Week Ending October 23, 2014)

Rengan Rajaratnam settled his insider trading case with the SEC this week, consenting to the entry of a permanent injunction and agreeing to pay disgorgement, prejudgment interest, a civil penalty and to be barred from the industry with a right to reapply after five years. The settlement follows Mr....

This Week In Securities Litigation (Week ending November 7, 2014)

This week the SEC and the DOJ filed a settled FCPA action. The disgorgement paid by the issuer put the case at number ten on the list for the largest such amounts paid in an SEC FCPA case. The Commission brought cases in groups this week. Broken windows continued with a group of failure to file actions...

This Week In Securities Litigation (Week ending November 14, 2014)

Supreme Court Justices Scalia and Thomas indicated that the High Court may at some point consider a question regarding the application of insider trading law in criminal cases and the deference due, if any, to the interpretations of that body of law by the SEC. The statement was appended to the denial...

This Week In Securities Litigation (Week ending November 21, 2014)

The Commission filed another settled FCPA action this week. The proceeding named two U.S. citizens living abroad as Respondents. The DOJ issued an Opinion discussing successor liability. The DC Circuit agreed to rehear the suit which challenged the SEC’s conflict minerals rules issued under...

This Week in Securities Litigation (December 5, 2014)

The SEC filed a series of actions in the last two weeks which included a break for the Thanksgiving holiday. One action focused on a Swiss investment firm giving advise in the U.S. without registering with the Commission. That case was resolved in a settlement that included admissions of violating the...

This Week In Securities Litigation (December 12, 2014)

The Second Circuit took center stage this week, handing down a decision which reversed the insider trading convictions of two remote tippees. The decision circumscribes tippee liability by defining the elements of a claim and resurrecting the personal benefit test crafted by the Supreme Court in Dirks...

This Week in Securities Litigation (December 19, 2014)

The Commission brought two FCPA cases this week, one of which was in conjunction with the DOJ. Both centered on the payments for gifts and travel in China. In addition, the SEC filed three manipulation cases, an action centered on a boiler room, three offering fraud actions, a proceeding centered...