LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - For-Profit College To Pay $2.25M To Settle Securities Fraud Claims

LOS ANGELES - A for-profit secondary education company and certain of its current and former executive officers have agreed to pay $2.25 million to settle claims that the company concealed its failure to comply with federal student loan funds usage requirements in violation of federal securities laws...

Mealey's Securities/D&O Liability - Investors Failed To Plead Elements Of Securities Law Claims, Defendants Say

NEW YORK - Lead plaintiffs in a securities class action lawsuit against a drug maker and certain of its current and former executive officers have failed to plead their federal securities law claims against the defendants because they have failed to plead any material misrepresentation, scienter or loss...

Mealey's Securities/D&O Liability - High Court Finds That SEC Disgorgement Claims Must Be Brought Within 5 Years

WASHINGTON, D.C. - Because they operate as penalties under federal law, disgorgement claims in Securities and Exchange Commission enforcement actions must be brought within five years of the date in which the claim accrued, the U.S. Supreme Court ruled June 5 in a unanimous opinion (Charles R. Kokesh...

Mealey's Securities/D&O Liability - Investor Named Lead Plaintiff In Securities Suit Over Public Offering Misstatements

BROOKLYN, N.Y. - A federal judge in New York on June 6 appointed a shareholder as lead plaintiff in a securities class action lawsuit against an industrial biotechnology company and certain of its current and former executive officers, ruling that the shareholder met all statutory requirements to serve...

Mealey's Securities/D&O Liability - Judge: Investor Failed To Plead Demand Futility In Shareholder Derivative Suit

DENVER - An investor has failed to plead demand futility in arguing that the board of directors for a Mexican food restaurant chain breached their fiduciary duty in failing to provide the necessary oversight of the company, leading to a massive foodborne illness outbreak, a federal judge in Colorado...

Mealey's Securities/D&O Liability - Investor Group Named Lead Plaintiff In Federal Securities Class Action

NEW YORK - An investor group was appointed as lead plaintiff in a securities class action lawsuit against a pet therapeutics company and certain of its executive officers on June 6 after a federal judge in New York ruled that the group met all statutory requirements to serve in the position (In re Aratana...

Mealey's Securities/D&O Liability - Panera Bread Investor Sues Company, Board Over Proposed Merger Deal

WILMINGTON, Del. - A shareholder sued restaurant chain Panera Bread Co. and its board of directors in Delaware federal court on June 7, alleging that the defendants issued a proxy statement in connection with a proposed merger deal that contains information insufficient for shareholders to properly consider...

Mealey's Securities/D&O Liability - Report: 2016 Securities Class Action Settlements Among Top 100 All-Time

NEW YORK - A total of 13 settlements in 2016 were large enough to be added to the top 100 list of securities class action settlements, including one to the top 10 all-time, in terms of total settlement amount, according to a report issued by corporate governance solutions provider Institutional Shareholder...

Mealey's Securities/D&O Liability - Shareholders Pleaded Scienter In Securities Suit Against Drug Maker, Judge Rules

SEATTLE - Shareholders in a securities class action lawsuit against a developmental pharmaceutical company and certain of its executive offices have properly pleaded a material misrepresentation at this point in the litigation and scienter in alleging that the defendants misrepresented the clinical trial...

Mealey's Securities/D&O Liability - U.S. Supreme Court To Hear SLUSA Jurisdictional Provisions Appeal

WASHINGTON, D.C. - The U.S. Supreme Court on June 27 agreed to hear an appeal of a California Superior Court ruling that shareholders in a securities class action are not preempted from bringing their claims under the Securities Act of 1933 by the Securities Litigation Uniform Standards Act (SLUSA) ...

Mealey's Securities/D&O Liability - Split D.C. Circuit Panel Rejects Claims In SEC Appointments Clause Appeal

WASHINGTON, D.C. - Without providing further detail, an equally divided 10-judge panel of the District of Columbia Circuit U.S. Court of Appeals on June 26 denied on rehearing en banc an investment adviser and his company's argument that a lower court erred in determining that the Securities and...

Mealey's Securities/D&O Liability - High Court Won't Hear Appeal In Deepwater Horizon Securities Suit

WASHINGTON, D.C. - The U.S. Supreme Court on June 27 denied an investor's petition for writ of certiorari that sought to overturn a federal district court's dismissal of a securities class action lawsuit as time-barred against Transocean Ltd. and certain of its former executive officers stemming...

Mealey's Securities/D&O Liability - Supreme Court Declines Review Of American Pipe Tolling Clarification Suit

WASHINGTON, D.C. - The U.S. Supreme Court on June 27 decided not to grant review of a New York federal court's dismissal of a securities class action lawsuit to determine whether the district court erred in ruling that investors' claims were not timely in contradiction of the high court's...

Mealey's Securities/D&O Liability - High Court Won't Hear Appeal In American Pipe Tolling Securities Class Action

WASHINGTON, D.C. - The U.S. Supreme Court on June 27 declined review of a securities class action lawsuit against The Bear Stearns Cos. LLC and others, which sought to determine whether American Pipe & Construction Co. v. Utah tolling applies to statutes of repose (SRM Global Master Fund Limited...

Mealey's Securities/D&O Liability - Judge Transfers Related Securities Suits To Illinois Federal Court

BATON ROUGE, La. - A transfer of venue to Illinois federal court is necessary because all public and private interest weigh heavily in favor of such action, a federal judge in Louisiana ruled July 5 in granting an expedited motion for transfer of venue in a securities class action lawsuit (Robert Berg...

Mealey's Securities/D&O Liability - Excess Insurer Entitled To Recover $5M Settlement Payment, 9th Circuit Affirms

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on July 7 affirmed a lower federal court's finding that a software firm insured's former first-layer excess directors and officers liability insurer is entitled to recover the $5 million it paid to settle an underlying securities action...

Mealey's Securities/D&O Liability - Semiconductor Developer To Pay $7.25M To Settle Securities Law Claims

SAN FRANCISCO - A semiconductor developer and certain of its executive officers will pay more than $7 million to settle claims that they violated federal securities laws by failing to disclose certain related party transactions in the company's financial statements, lead plaintiffs say in a motion...

Mealey's Securities/D&O Liability - Panel Partially Overturns Class Certification Order In Securities Lawsuit

NEW YORK - A Second Circuit U.S. Court of Appeals panel on July 7 partially overturned a federal judge's class certification order, ruling that the judge failed to properly consider the U.S. Supreme Court's ruling in Morrison v. National Australia Bank, Ltd. in certifying two classes of investors...

Mealey's Securities/D&O Liability - Snapchat Parent Company Hit With Securities Class Action Over IPO Misstatements

LOS ANGELES - A shareholder on July 10 filed a securities class action complaint against a camera company, certain of its executive officers and underwriters of its initial public offering (IPO) in California federal court, alleging that the defendants concealed a slowdown in a key user engagement metric...

Mealey's Securities/D&O Liability - Royal Bank Of Scotland To Pay $5.5B To Settle FHFA Securities Claims

NEW HAVEN, Conn. - Royal Bank of Scotland Group PLC will pay $5.5 billion to settle claims that it misrepresented the investment quality of certain mortgage-backed securities it sold to Fannie Mae and Freddie Mac in violation of state and federal securities laws, according to a press release issued July...

Mealey's Securities/D&O Liability - Judge Dismisses Shareholder Derivative Suit For Failure To Plead Demand Futility

NEW YORK - An investor failed to plead demand futility in claiming that the board of directors of The Wendy's Co. breached its fiduciary duty by failing to require the company to join an industry alliance, which allegedly led to consumer protests and boycotts of the fast food chain, a federal judge...

Mealey's Securities/D&O Liability - Investor: Drug Maker Concealed Dry Eye Drug Manufacturing Issues

NEWARK, N.J. - A shareholder sued a pharmaceutical company and certain of its executive officers on July 12 in New Jersey federal court, alleging that the defendants concealed manufacturing issues with the drug company's inflammatory dry eye disease medication in violation of federal securities laws...

Mealey's Securities/D&O Liability - 5th Circuit: No Jurisdiction Over Untimely Objection To Class Settlement

NEW ORLEANS - A Fifth Circuit U.S. Court of Appeals panel on July 17 ruled that it lacked appellate jurisdiction over a class member's untimely objection to a settlement resolving a merger dispute where class members receive only additional disclosures, confirmatory discovery and attorney fees (Lawrence...

Mealey's Securities/D&O Liability - 2nd Circuit Panel Affirms ERISA Claims Dismissal, OKs Securities Claim Amendment

NEW YORK - A Second Circuit U.S. Court of Appeals panel on July 13 affirmed the dismissal of retired Booz Allen Hamilton officers' Employee Retirement Income Security Act claims because the plan through which Booz Allen distributed its stock to employees was not an employee pension benefit plan within...

Mealey's Securities/D&O Liability - 2nd Circuit Overturns Convictions In Rabobank LIBOR Criminal Proceedings

NEW YORK - In what the Second Circuit U.S. Court of Appeals is calling the first criminal appeal related to the London Interbank Offered Rate (LIBOR) to reach a federal appellate court, the appeals court on July 19 overturned the convictions of two former employees of Cooperatieve Centrale Raiffeisen...