LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - U.S. Supreme Court Declines Review Of Whistleblower Award Dispute

WASHINGTON, D.C. - The U.S. Supreme Court on May 14 declined review of a Second Circuit U.S. Court of Appeals ruling that claimants are not entitled to whistleblower awards in a Securities and Exchange Commission action because their claims were filed nearly two years after the 90-day deadline for submitting...

Mealey's Securities/D&O Liability - High Court Won't Hear Appeal In Dodd-Frank Anti-Spoofing Case

WASHINGTON, D.C. - The U.S. Supreme Court on May 14 declined review of a Seventh Circuit U.S. Court of Appeals' affirmation of a commodity trader's conviction for violating the anti-spoofing provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act and engaging in commodities...

Mealey's Securities/D&O Liability - U.S. Supreme Court Declines Review Of Scienter Pleading Standard Dispute

WASHINGTON, D.C. - The U.S. Supreme Court on May 21 declined review of a Fourth Circuit U.S. Court of Appeals ruling that an investor failed to properly plead scienter in making his federal securities law claims against a company and two of its senior executives in a class action lawsuit (Maguire Financial...

Mealey's Securities/D&O Liability - Settlement In Shareholder Derivative Lawsuit Fails To Gain Final Approval

NEW YORK - Reforms agreed to by an investor and several former outside directors of an on-land and offshore wind turbine tower manufacturer in a proposed shareholder derivative lawsuit settlement fail to provide any meaningful benefit to the company the investor or the company's shareholders, a federal...

Mealey's Securities/D&O Liability - TD Ameritrade Defendants Dismissed From Securities Class Action

PHILADELPHIA - An investor's unsuitability claim under Section 10(b) of the Securities Exchange Act of 1934 fails because the investor is unable to show that TD Ameritrade Inc. and two of its subsidiaries recommended or purchased securities for her that led to extensive losses on her investments...

Mealey's Securities/D&O Liability - Agency Tells High Court That Review Of Ruling In Securities Suit Not Needed

WASHINGTON, D.C. - U.S. Supreme Court review of a federal court's ruling that the Housing and Economic Recovery Act of 2008 (HERA) supersedes the statute of repose on certain state and federal securities laws is not necessary because the ruling is in line with similar rulings in every other federal...

Mealey's Securities/D&O Liability - Stockholders Sue Financial Company's Directors For Breach Of Fiduciary Duty

WILMINGTON, Del. - Stockholders in a May 21 complaint filed in a Delaware court accuse the directors of a financial company operating in the insurance and reinsurance business of breaching their fiduciary duty by transferring the value of stocks to their benefit (Icahn Partners LP, et al. v. Barry D...

Mealey's Securities/D&O Liability - Judge: Investor's Amended Complaint Failed To Cure Pleading Deficiencies

NEW YORK - The lead plaintiff in a shareholder class action against pharmacy benefits manager (PBM) Express Scripts Holding Co. and certain of its executives failed to cure pleading deficiencies in its second amended complaint after its federal securities law claims had previously been dismissed for...

Mealey's Securities/D&O Liability - Insured's Conclusory Bad Faith Allegations Lead To Summary Judgment Ruling

PHILADELPHIA - A federal judge in Pennsylvania on May 23 granted partial summary judgment on an insurance bad faith claim in an underinsured motorist dispute, ruling that an insured pleaded only conclusory allegations in stating the claim (Marc Williams v. Liberty Mutual Insurance, No. 17-3862, E.D....

Mealey's Securities/D&O Liability - Lack Of Material Misstatements Leads To Dismissal Of Securities Suit

NEW YORK - A New York federal judge on June 4 ruled that lead plaintiffs in a securities class action lawsuit against a biopharmaceutical company and certain of its executive officers failed to plead that the defendants issued any material misrepresentations or omissions in promoting the efficacy of...

Mealey's Securities/D&O Liability - Insider Trading Conviction Withstands Habeas Corpus Challenge

NEW YORK - Convicted hedge fund manager Raj Rajaratnam failed to properly raise an argument in support of a challenge of his convictions for insider trading based on Second Circuit precedent on direct appeal and is, thus, "procedurally barred from doing so on a collateral challenge" on a habeas...

Mealey's Securities/D&O Liability - Panel Affirms Denial Of Appeal Of Securities Fraud Conviction Ruling

DENVER - A man convicted of securities fraud and money laundering for his role in a securities fraud scheme was not improperly denied a certificate of appealability (COA) after a federal district court denied his motion to vacate or set aside its verdict against him because reasonable jurists would not...

Mealey's Securities/D&O Liability - Investor Found To Have Failed To Plead Securities Claims With Particularity

OAKLAND, Calif. - A federal judge in California on June 4 ruled that the lead plaintiff in a securities class action failed to plead any material misrepresentations or omissions or scienter in arguing that a clinical stage biopharmaceutical company and certain of its senior executives concealed from...

Mealey's Securities/D&O Liability - Panel: Shareholder's Failure To Respond To Issuance Letter Constituted Consent

CHICAGO - A failure by defendants to include the terms of an issuance of a company's stock in a letter to shareholders did not constitute a violation of federal securities law, and a shareholder's failure to respond to the letter under the terms of a Class A Stock Restriction Agreement (SRA)...

Mealey's Securities/D&O Liability - High Court Limits American Pipe Tolling For Class Actions

WASHINGTON, D.C. - Putative class members may not file a new class action lawsuit outside the applicable statute of limitations in lieu of joining an existing class action lawsuit or filing an individual action, the U.S. Supreme Court ruled on June 11, overturning a federal circuit court's determination...

Mealey's Securities/D&O Liability - Judge: Company Did Not Mislead Investors About Internet Licensing Compliance

NEWARK, N.J. - In a June 7 unpublished opinion, a federal judge in New Jersey dismissed a third amended securities class action complaint, ruling that a lead plaintiff failed to show that a Chinese social media company and certain of its current and former senior executives issued any misrepresentations...

Mealey's Securities/D&O Liability - Investor's State Law Claims Not Subject To SLUSA Preclusion, Panel Rules

ATLANTA - An 11th Circuit U.S. Court of Appeals panel on June 8 reversed and remanded an appeal in a securities class action lawsuit, ruling that a federal district court erred in determining that an investor's state law breach of contract and negligence claims were precluded under Title I of the...

Mealey's Securities/D&O Liability - Securities Fraud Claims Survive Attempts At Dismissal In Class Action

LOS ANGELES - In a June 7 order, a federal judge in California denied motions to dismiss in a securities class action lawsuit against social media company Snap Inc., certain of its senior executives and directors and underwriters of the company's initial public offering (IPO), ruling that shareholders...

Mealey's Securities/D&O Liability - Intuitive Surgical Settles Da Vinci Securities Class Action For $42.5M

SAN JOSE, Calif. - Intuitive Surgical Inc. on June 13 announced that it reached an agreement in principle to settle a securities class action for $42.5 million (In Re: Intuitive Surgical Securities Litigation, No. 13-1920, N.D. Calif.).

Mealey's Securities/D&O Liability - New York High Court: Martin Act Claims Subject To 3-Year Limitations Period

ALBANY, N.Y. - In a 4-1 ruling, a divided New York Court of Appeals on June 12 ruled that claims brought pursuant to the Martin Act are governed by a three-year statute of limitations under New York law (The People v. Credit Suisse (USA) LLC, et al., No. 40, N.Y. App., 2018 N.Y. LEXIS 1451).

Mealey's Securities/D&O Liability - Dismissal Of Derivative Suit For Failure To Plead Demand Futility Upheld

SAN FRANCISCO - Shareholders in a derivative lawsuit against certain officers and directors of a solar panel manufacturer failed to plead demand futility, and a federal district court did not err in dismissing their complaint as a result, a Ninth Circuit U.S. Court of Appeals panel ruled June 13 (Clifford...

Mealey's Securities/D&O Liability - Judge: Falsity, Materiality Elements Of Securities Law Claims Properly Pleaded

NEW YORK - A federal judge in New York on June 12 ruled that a lead plaintiff in a securities class action lawsuit properly pleaded falsity and materiality in arguing that a drug maker and certain of its current and former executive officers concealed from investors that the company had overstated its...

Mealey's Securities/D&O Liability - Utah High Court Overturns Securities Fraud Statute Of Limitations Ruling

SALT LAKE CITY - Utah's Pattern of Unlawful Activity Act allows the state to establish a pattern of unlawful conduct on crimes that fall outside the statute of limitations, the Utah Supreme Court ruled June 12 in reversing and remanding a state trial court's ruling (Utah v. Scott R. Stewart,...

Mealey's Securities/D&O Liability - Biosciences Company Hit With Stock-Drop Suit Over Internal Controls Reporting

NEWARK, N.J. - An investor sued a biosciences company and certain of its senior officers and directors in New Jersey federal court on June 13, alleging that the defendants concealed certain weaknesses in the company's internal controls, allowing it to improperly recognize revenue in violation of...

Mealey's Securities/D&O Liability - Investor Sues To Halt Merger Deal Vote Until Company Provides Needed Information

SAN FRANCISCO - A shareholder on June 13 sued an investment adviser and its board of directors in California federal court, seeking to halt the company's proposed merger deal with a financial planning firm until information necessary for shareholders to vote on the proposed deal is disclosed (Jerry...