LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - Judge: Investor Failed To Plead Elements Of Securities Law Claims

NEW YORK - Dismissal of claims against an independent auditor in a securities class action lawsuit is proper, a federal judge in New York ruled May 24, because the lead plaintiff in the action failed to plead a material misrepresentation, falsity or scienter in making his federal securities law claims (In re Poseidon Concepts Securities Litigation, No. 13-1213, S.D. N.Y.; 2016 U.S. Dist. LEXIS 68127).

Mealey's Securities/D&O Liability - Judge: Lead Plaintiff In Securities Class Action Failed To Plead Materiality

NEW YORK - Dismissal of a securities class action lawsuit is proper because the lead plaintiff in the action failed to plead materiality or show that an online retailer had a duty to disclose that Overstock.com was a direct competitor in offering documents for the retailer's initial public offering (IPO) in making his federal securities law claims, a federal judge in New York ruled May 24 (Gerald Dingee, et al. v. Wayfair Inc., et al., No. 15-6941, S.D. N.Y.; 2016 U.S. Dist. LEXIS 68322).

Mealey's Securities/D&O Liability - Relevant Factors Weigh In Favor Of Transfer Of Securities Suit, Judge Says

NEW YORK - Transfer of a securities class action lawsuit to another federal district court is proper because shareholders' claims could have been brought in that court and because the relevant factors "overwhelmingly support transfer of this action to the District," a federal judge in New York ruled May 19 (William Ahrens, et al. v. CTI Biopharma Corp., et al., No. 16-1044, S.D. N.Y.; 2016 U.S. Dist. LEXIS 66139).

Mealey's Securities/D&O Liability - Judge: Shareholders Failed To Plead Loss Causation In Making Securities Claims

SAN FRANCISCO - Dismissal of an amended complaint in a securities class action lawsuit is proper because shareholders failed to properly plead loss causation in making their federal securities law claims against a biotechnology company and others, a federal judge in California ruled May 20 (Francis J. Bonanno v. Cellular Biomedicine Group Inc., et al., No. 15-1795, N.D. Calif.; 2016 U.S. Dist. LEXIS 66841).

Mealey's Securities/D&O Liability - High Court: Securities Claims Not Preempted From Being Brought In State Court

WASHINGTON, D.C. - The jurisdictional test established by Section 27 of the Securities Exchange Act of 1934 does not preempt certain federal securities law claims from being brought in state court, the U.S. Supreme Court unanimously ruled on May 16 in affirming a federal circuit court's ruling in a fraudulent naked short-selling scheme (Merrill Lynch, Pierce, Fenner & Smith Inc., et al. v. Greg Manning, et al., No. 14-1132, U.S. Sup.).

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

SAN FRANCISCO - A federal judge in California on May 10 named an investor group as lead plaintiff in a securities class action lawsuit against Fitbit Inc. and certain of its executive officers, ruling that the investor group meets all statutory requirements for appointment as lead plaintiff (Brian H. Robb v. Fitbit Inc., et al., No. 16-0151, N.D. Calif.; 2016 U.S. Dist. LEXIS 62457).

Mealey's Securities/D&O Liability - Investors: Rehearing Needed For Class Certification Ruling In Securities Suit

ST. PAUL, Minn. - An Eighth Circuit U.S. Court of Appeals panel erred in reversing and remanding a federal district court's class certification ruling because the panel's ruling is in conflict with the law of several federal circuit courts and the U.S. Supreme Court, shareholders argue in a petition for rehearing and rehearing en banc filed May 10 (IBEW Local 98 Pension Fund, et al. v. Best Buy Co., Inc., et al., No. 14-3178, 8th Cir.).

Mealey's Securities/D&O Liability - Judge: Report Shows Dismissal Of Securities Suit Warranted Under Caremark

WILMINGTON, Del. - A federal judge in Delaware on May 12 accepted a federal magistrate judge's report and recommendation in a shareholder derivative lawsuit and rejected a shareholder's objections to the report, ruling that it properly pleads the In re Caremark International Inc. Derivative Litigation "should have known" standard in stating that the shareholder failed to plead demand futility (KBC Asset Management NV v. Kevin J. McNamara, et al., No. 13-1854, D. Del.).

Mealey's Securities/D&O Liability - Shareholders Failed To State A Claim For Relief In Securities Suit, Judge Rules

NEW YORK - Dismissal of claims in a securities class action lawsuit against Weight Watchers International Inc., certain of its former executive officers and others is proper because lead plaintiffs in the action failed to properly state a claim for relief in making their federal securities law claims, a federal judge in New York ruled May 11 (In re Weight Watchers International Inc. Securities Litigation, No. 14-1997, S.D. N.Y.; 2016 U.S. Dist. LEXIS 62456).

Mealey's Securities/D&O Liability - Motion To Compel Production Of Documents In Securities Class Action Denied

SAN FRANCISCO - A federal magistrate judge in California on May 6 denied a request by defendants in a securities class action lawsuit to compel lead plaintiffs to turn over certain documents, ruling that the documents are protected by the work product doctrine or are not relevant to the action (Babak Hatamian, et al. v. Advanced Micro Devices Inc., et al., No. 14-0226, N.D. Calif.; 2016 U.S. Dist. LEXIS 60551).

Mealey's Securities/D&O Liability - Broker-Dealer Pleads Guilty To Role In $250M Money-Laundering Scheme

BROOKLYN, N.Y. - A broker-dealer with dual citizenship in the United States and Canada pleaded guilty in New York federal court on May 9 to his role in a $250 million money laundering scheme while orchestrating more than 40 stock pump-and-dump schemes between 2010 and 2014, according to a press release issued by the U.S. Attorney's Office for the Eastern District of New York (United States of America v. Roberts Bandfield, et al., No. 14-cr-0476, E.D. N.Y.).

Mealey's Securities/D&O Liability - Drug Company To Pay $55M To Settle Federal Securities Fraud Claims

NEW YORK - A drug company will pay $55 million to shareholders to settle claims that it failed to disclose adverse clinical trial results for its nonalcoholic steatohepatitis drug, obeticholic acid (OCA), in violation of federal securities laws, according to court documents filed in New York federal court on May 5 (In re Intercept Pharmaceuticals Inc. Securities Litigation, No. 14-1123, S.D. N.Y.).

Mealey's Securities/D&O Liability - 9th Circuit Panel Hears Oral Arguments In Appeal Of Securities Class Action Ruling

PASADENA, Calif. - A Ninth Circuit U.S. Court of Appeals panel on May 4 heard oral arguments in an appeal of a California federal court judge's ruling dismissing an amended securities class action complaint for failure to properly plead scienter (Nathaniel L. Anderson v. Peregrine Pharmaceuticals Inc., et al., No. 14-55882, 9th Cir.).

Mealey's Securities/D&O Liability - Panel: Court Properly Dismissed Securities Suit For Failure To Plead Scienter

SAN FRANCISCO - A Ninth Circuit U.S. Court of Appeals panel on May 3 ruled that a federal district court did not err in dismissing federal securities law claims against a company, several of its current and former officers and directors and underwriters of the company's initial public offering (IPO) because investors failed to properly plead any material misrepresentations or scienter in making their claims (Cliff Mosco, et al. v. Motricity Inc., et al., No. 13-36029, 9th Cir.).

Mealey's Securities/D&O Liability - Shareholders: Judge Erred In Ruling That Securities Claims Not Properly Pleaded

SAN FRANCISCO - A federal district court erred in dismissing a securities class action lawsuit and denying reconsideration of its ruling because shareholders properly pleaded a material misrepresentation, scienter and loss causation in making their federal securities law claims, the shareholders argue in an appellant brief filed May 2 in the Ninth Circuit U.S. Court of Appeals (Joseph Curry, et al. v. Yelp Inc., et al., No. 16-15104, 9th Cir.).

Mealey's Securities/D&O Liability - Panel: Federal Securities Law Claims Time-Barred Under Statute Of Repose

NEW YORK - A federal judge did not err in dismissing federal securities laws claims against defendants in a securities class action lawsuit because shareholder claims were time-barred under the applicable statute of repose, a Second Circuit U.S. Court of Appeals panel ruled April 29 (DeKalb County Pension Fund v. Transocean Ltd., et al., No. 14-0894, 2nd Cir.).

Mealey's Securities/D&O Liability - Judge Vacates Dismissal Ruling In Securities Class Action Lawsuit

CLEVELAND - A federal judge in Ohio on April 27 granted a shareholder's motion for reconsideration of an earlier ruling dismissing the shareholder's amended complaint, ruling that the shareholder properly pleaded a material misrepresentation and scienter in making its federal securities law claims (Santokh Sohol v. Ellis Yan, et al., No. 15-0393, N.D. Ohio; 2016 U.S. Dist. LEXIS 56049).

Mealey's Securities/D&O Liability - Judge: Investor Failed To Plead Material Misstatement In Securities Class Action

TRENTON, N.J. - Dismissal of federal claims in a securities class action lawsuit is proper because a shareholder failed to plead any material misstatements or omissions in making his claims against a drug company and certain of its current and former executive officers, a federal judge in New Jersey ruled April 26 (In re Amarin Corp. PLC Securities Litigation, No. 13-6663, D. N.J.; 2016 U.S. Dist. LEXIS 55568).

Mealey's Securities/D&O Liability - High Court Won't Determine Whether SEC In-House Court Is Constitutional

WASHINGTON, D.C. - The U.S. Supreme Court on April 25 denied review of a securities broker's appeal of a Securities and Exchange Commission administrative law judge's (ALJ) ruling holding him liable for violations of federal securities laws in which the broker sought determination as to whether the ALJs are unconstitutional (Gordon B. Pierce v. Securities and Exchange Commission, No. 15-907, U.S. Sup.).

Mealey's Securities/D&O Liability - Investors Argue They Have Properly Pleaded Elements Of Their Securities Claims

BOSTON - Dismissal of a securities class action lawsuit is not proper because lead plaintiffs have properly pleaded a material misrepresentation, scienter and loss causation in making their federal securities law claims, the lead plaintiffs argue in an April 18 opposition brief (William M. Cody, et al. v. ConforMIS Inc., et al., No. 15-13295, D. Mass.).

Mealey's Securities/D&O Liability - Investors Seek Preliminary Approval Of $41.5M Settlement In Securities Suit

ALEXANDRIA, Va. - Defendants in a securities class action lawsuit will pay more than $41 million to settle claims that they misrepresented a company's business and financial condition in violation of federal securities laws, according to a motion for preliminary approval of settlement filed in Virginia federal court on April 18 (In re NII Holdings Inc. Securities Litigation, No. 14-227, E.D. Va.).

Mealey's Securities/D&O Liability - Panel: Court Properly Ruled That Shareholders Failed To Plead Falsity

SAN FRANCISCO - A federal district court did not err in dismissing a securities class action complaint against Netflix Inc. and certain of its officers and directors because shareholders failed to plead falsity as statutorily required, a Ninth Circuit U.S. Court of Appeals panel ruled April 11 (In re Netflix Inc. Securities Litigation, No. 14-15315, 9th Cir.; 2016 U.S. App. LEXIS 6569).

Mealey's Securities/D&O Liability - Court Erred In Certifying Class In Securities Suit, Split 8th Circuit Panel Rules

ST. PAUL, Minn. - A federal district court abused its discretion in granting class certification in a securities class action lawsuit because shareholders failed to satisfy the predominance requirement under the Federal Rules of Civil Procedure, a split Eighth Circuit U.S. Court of Appeals panel ruled April 12 (IBEW Local 98 Pension Fund, et al. v. Best Buy Co., Inc., et al., No. 14-3178, 8th Cir.; 2016 U.S. App. LEXIS 6616).

Mealey's Securities/D&O Liability - Panel: District Court Erred In Excluding Expert Testimony In Securities Suit

NEW YORK - A federal judge erred in excluding the testimony of a shareholder's damages expert and granting summary judgment in favor of defendants in a securities class action lawsuit because the judge's exclusion ruling was inadequate, a Second Circuit U.S. Court of Appeals panel ruled April 12 (In re Pfizer Inc. Securities Litigation, No. 14-2853, 2nd Cir.; 2016 U.S. App. LEXIS 6622).

Mealey's Securities/D&O Liability - Panel: Investors Failed To Plead Scienter, Misstatements Against Auditors, Others

NEW YORK - A federal district court did not err in dismissing a securities fraud lawsuit against the auditors and former officers and directors of a Chinese education services provider, a Second Circuit U.S. Court of Appeals panel ruled April 8, because the investors failed to properly plead an actionable misstatement or omission and scienter in making its state and federal securities law claims (Special Situations Fund III Qp L.P., et al. v. Deloitte Touche Tohmatsu CPA Ltd., et al., No. 15-1813, 2nd Cir.; 2016 U.S. App. LEXIS 6398).