Securities

Recent Posts

Inadequate Loan Loss Reserve Disclosure Case Dismissed
Posted on 20 Aug 2010 by Kevin M. LaCroix

In a recent post , I discussed several recent decisions in which securities cases involving failed or troubled banking institutions survived dismissal motions. By contrast, however, in an August 16, 2010 ruling ( here ), Southern District of New York... Read More

SEC Charges Oil and PR Firms and Their Executives With Fraud
Posted on 6 Aug 2014 by Thomas O. Gorman

An energy company, its CEO and the firm’s public relations adviser and its president were named in a fraud action by the SEC centered on false representations concerning oil reserves for a property in Columbia. The representations were used to sell... Read More

Ontario Securities Suit Claimants Denied Leave to Proceed
Posted on 22 Nov 2013 by Kevin M. LaCroix

Shareholder claimants seeking to pursue a misrepresentation claim under the Ontario Securities Act must obtain leave of court to proceed based on a statutory requirement that the plaintiff must show a “reasonable possibility that the action will... Read More

FDIC Files First Suit Against Failed Bank's Accountants
Posted on 7 Nov 2012 by Kevin M. LaCroix

On November 1, 2012, in what is the first lawsuit the FDIC has filed as part of the current bank failure wave against a failed bank's accountants, the FDIC, as receiver for the failed Colonial Bank, has filed an action in the Middle District of Alabama... Read More

SEC Settles With Former IndyMac CEO After Dropping Most Claims
Posted on 5 Oct 2012 by Thomas O. Gorman

One of the Commission's significant market crisis cases arose out of the collapse of IndyMac Bancorp, Inc. SEC v. Perry, Civil Action No. CV 11-01309 (C.D. Cal. Filed Feb. 11, 2011). The complaint named as defendants Michael Perry, former CEO and... Read More

Stay on Target
Posted on 13 Jan 2011 by Doug Cornelius

Don't stray from your investment strategy. Don't chase yields. Make sure your investment strategy follows your marketing materials. According to SEC charges, Charles Schwab failed to do this with its YieldPlus Fund in 2007. The fund was marketed... Read More

$37M Settlement Reached in Tronox Investor Class Action Lawsuit
Posted on 8 Aug 2012 by LexisNexis® Mealey's™ Legal News

NEW YORK - (Mealey's) Shareholders and defendants in a securities class action lawsuit against a chemical company, certain of its officers and directors and others have agreed to a $37 million settlement of all federal securities law claims, according... Read More

CEO, CFO Named in SEC Actions For Concealing Control Problems
Posted on 31 Jul 2014 by Thomas O. Gorman

The co-founders of a Florida based computer company were names as Respondents in SEC administrative proceedings. The actions centers on significant internal control difficulties regarding the inventory which, rather than being remedied, were concealed... Read More

Schwab Settles Actions with the SEC
Posted on 12 Jan 2011 by Thomas O. Gorman

Charles Schwab settled claims with the Commission relating to its YieldPlus Fund which at one time invested primarily in mortgage backed securities, asset backed securities and corporate bonds. In the Mater of Charles Schwab Investment Management ... Read More

SEC Secures $2.7 Million Judgment Against Broker and Others
Posted on 29 Apr 2013 by Thomas O. Gorman

The Commission prevailed on a motion for summary judgment against a brokerage firm, its principle and a former managing director, ultimately securing judgments of over $2.7 million. SEC v. Constantin, Civil Action No. 11-CV-4642 (S.D.N.Y. Filed July... Read More

A Financial Fraud Action Centered on a Fictitious Customer
Posted on 12 Nov 2010 by Thomas O. Gorman

The SEC filed an amended complaint, adding Jon Latorella and James Fields as defendants to an action alleging a financial fraud and stock manipulation involving two companies they control. SEC v. LocatePlus Holdings Company , Case No. 1:10-cv-11751... Read More

When the Truth Emerges, No Price Drop Equals No Loss Causation
Posted on 12 Aug 2010 by Thomas O. Gorman

The Ninth Circuit upheld a ruling concluding that plaintiffs failed to establish loss causation in an action where the share price did not decline following the emergence of the truth in a Securities Act Section 12(2) action. Miller v. Thane International... Read More

This Week in Securities Litigation (April 8, 2011)
Posted on 8 Apr 2011 by Thomas O. Gorman

Prosecutors concluded their case-in-chief in the Galleon insider trading trial this week. SEC enforcement, in conjunction with the U.S. Attorney's Office in New Jersey, brought an insider trading case against an attorney, a former associate of... Read More