LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - Credit Suisse Agrees To Pay $400M To Settle NCUA MBS Claims

KANSAS CITY, Kan. - Credit Suisse Securities (USA) LLC will pay $400 million to settle claims with the National Credit Union Administration (NCUA) that is mispresented the investment quality of residential mortgage-backed securities (MBS) it underwrote and sold to three failed credit unions, according...

Mealey's Securities/D&O Liability - Majority Of 10th Circuit Judges Denies Rehearing In SEC ALJ Challenge Suit

DENVER - A majority of the 10th Circuit U.S. Court of Appeals on May 3 denied the Securities and Exchange Commission's petition for rehearing and rehearing en banc, rejecting the commission's argument that a 10th Circuit panel erred in holding that the SEC's administrative law judges (ALJs...

Mealey's Securities/D&O Liability - Partial Stay Of Notice Recommended In Big Lots Securities Class Action

COLUMBUS, Ohio - A federal magistrate judge in Ohio on May 4 recommended that a motion to stay dissemination of class notice in a securities class action lawsuit against broad line closeout retailer Big Lots Inc. and certain of its executive officers be partially granted, ruling that class representative...

Mealey's Securities/D&O Liability - Parties Seek Joint Stay In Securities Suit To Negotiate $97.5M Settlement

TYLER, Texas - Shareholders and defendants in a securities class action lawsuit against retailer JCPenney Co. Inc. and certain of its executive officers have provisionally agreed to a $97.5 million settlement on claims that the defendants misrepresented the company's business and financial condition...

Mealey's Securities/D&O Liability - Panel Affirms Court's Dismissal Of Securities Suit For Failure To Plead Falsity

SAN FRANCISCO - The lead plaintiff in a securities class action lawsuit against a tech company and certain of its current and former executive officers failed to plead any of the required elements of falsity as required pursuant to the U.S. Supreme Court's ruling in Omnicare Inc., et al. v. The Laborers...

Mealey's Securities/D&O Liability - Judge Grants Preliminary Approval Of $165M Settlement In MBS Suit

NEW YORK - A federal judge in New York on May 9 granted preliminary approval of a $165 million securities class action settlement between shareholders and certain underwriters of mortgage-backed securities (MBS) alleged to have taken part in a fraudulent scheme to misrepresent the underwriting standards...

Mealey's Securities/D&O Liability - Barclays Agrees To Pay More Than $97M To Settle SEC Enforcement Action

WASHINGTON, D.C. - Barclays Capital Inc. will pay more than $97 million to settle claims filed by the Securities and Exchange Commission alleging that the broker-dealer overcharged investors from September 2010 to March 2015 for services not provided, according to an order instituting cease-and-desist...

Mealey's Securities/D&O Liability - Investor Failed To Cure Pleading Issues In LeapFrog Securities Suit, Judge Rules

SAN FRANCISCO - An investor failed to plead falsity or scienter in alleging that LeapFrog Enterprises Inc. and members of its board of directors misrepresented the company's business and financial condition in documents released as part of a proposed merger deal, a federal judge in California ruled...

Mealey's Securities/D&O Liability - Panel: Judge Did Not Engage In Prohibited Fact Finding In Securities Suit

SAN FRANCISCO - A federal judge did not err in dismissing a lead plaintiff's second amended complaint in a securities class action lawsuit against LifeLock Inc. and certain of its executive officers because the lead plaintiff failed to plead any material misrepresentations or omissions in pleading...

Mealey's Securities/D&O Liability - Panel Affirms Dismissal Of Securities Class Action For Failure To Plead Scienter

BOSTON - A federal district court judge did not err in dismissing a shareholder class action lawsuit because the lead plaintiff failed to plead scienter in making its federal securities law claims against a drug maker and certain of its executive officers, a First Circuit U.S. Court of Appeals panel...

Mealey's Securities/D&O Liability - Elements Of Securities Law Claim Properly Pleaded, GoPro Investor Says

OAKLAND, Calif. - Dismissal of an amended securities class action complaint is not proper because the lead plaintiff in the action has properly pleaded an actionable misrepresentation or omission, scienter and loss causation, the lead plaintiff argues in a May 15 opposition brief (Anton Bielousov v....

Mealey's Securities/D&O Liability - Judge: Pension Fund Cured Scienter Pleading Deficiency Against Company, CEO

SAN FRANCISCO - In granting in part and denying in part a motion to dismiss, a federal judge in California on May 17 held that a pension fund has cured its pleading deficiencies and properly shown that a semiconductor producer and its CEO acted with the requisite scienter in misrepresenting the company's...

Mealey's Securities/D&O Liability - Judge: Defendants' Alleged Misrepresentations Not Actionable In Securities Suit

NEWARK, N.J. - Lead plaintiffs in a securities class action lawsuit against a pharmaceutical company and its CEO have failed to plead any material misstatements or omissions in arguing that the defendants misrepresented that the company's new drug was expected to gain U.S. Food and Drug Administration...

Mealey's Securities/D&O Liability - Judge Substantially Denies Motion To Dismiss In IPO Stock Drop Suit

NEW YORK - A pension fund has properly pleaded a majority of its federal securities law claims alleging that a company, certain of its officers and directors and the underwriters of its initial public offering (IPO) concealed from investors that the company was expected to see a tax increase that would...

Mealey's Securities/D&O Liability - Judge Dismisses Securities Claims Related To Allegedly Fraudulent Club Investment

SAN DIEGO - A California federal judge on May 22 dismissed an investor's claims for violation of California's unfair competition law (UCL) and securities laws, finding that he failed to show that he was fraudulently induced into investing in the development of a nightclub (Matthias Mueller v...

Mealey's Securities/D&O Liability - 9th Circuit: Claims Subject To American Pipe Tolling In Securities Class Action

LOS ANGELES - A federal district court erred in holding that claims in a securities class action lawsuit against a Chinese agricultural products manufacturer and certain of its officers and directors were time-barred because the statute of limitations was tolled pursuant to Supreme Court precedent in...

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...