MINNEAPOLIS - A federal judge in Minnesota on April 30 granted in part and denied in part a motion for judgment on the pleadings in a securities class action, ruling that shareholders have failed to show that an officer of Best Buy Co. Inc. acted as a primary violator in a securities fraud scheme (IBEW Local 98 Pension Fund, et al. v. Best Buy Co., Inc., et al., No. 11-429, D. Minn.; 2014 U.S. Dist. LEXIS 59951).
DALLAS - Defendants in a securities class action lawsuit will pay $10.2 million to settle claims that they misrepresented the performance levels at an oil field, as well as its future expected performance, in violation of federal securities laws, according to court documents filed April 28 in Texas federal court (In re Kosmos Energy Ltd. Securities Litigation, No. 12-373, N.D. Texas).
NEW YORK - First Horizon National Corp., certain of its subsidiaries and others will pay $110 million to settle claims that they violated state and federal securities laws in misrepresenting the investment quality of nearly $883 million in residential mortgage-backed securities that were sold to Fannie Mae and Freddie Mac (collectively, government-sponsored agencies or GSEs), the Federal Housing Finance Agency (FHFA) announced April 29 (Federal Housing Finance Agency v. First Horizon National Corp., No. 11-6193, S.D. N.Y.).
ATLANTA - A federal district court erred in dismissing an investor lawsuit against their investment advisers for negligently investing in a feeder fund for Bernard L. Madoff's massive Ponzi scheme because the district court erred in applying the inquiry notice standard in its dismissal, an 11th Circuit U.S. Court of Appeals panel ruled April 28 (Quentin Walter, et al. v. Frank J. Avellino, et al., No. 13-13081, 11th Cir.; 2014 U.S. App. LEXIS 7901).
LOS ANGELES - Even though the number of accounting class action filings remained "relatively consistent" at 47 filings in 2013, market capitalization losses associated with such cases saw a rise over 2012, according to a report issued April 29 by economic and financial consulting firm Cornerstone Research.
NEW YORK - The Second Circuit U.S. Court of Appeals on April 25 affirmed in part and vacated in part a federal court's dismissal of a putative securities fraud class action alleging that Barclays Bank PLC and its affiliates (collectively, Barclays) and former officers willfully misrepresented the bank's borrowing costs and knowingly submitted false London Interbank Offered Rate (Libor) information (Carpenters Pension Trust Fund, et al. v. Barclays PLC, et al., No. 13-2678, 2nd Cir.).
KANSAS CITY, Kan. - A federal judge in Kansas on April 21 dismissed the National Credit Union Administration Board's remaining claims in a federal securities lawsuit, ruling that those claims are time-barred and not entitled to equitable tolling (National Credit Union Administration Board v. UBS Securities LLC, No. 12-2591, D. Kan.).
NEW YORK - Barclays Bank PLC and certain of its affiliates will pay $280 million to settle claims with the Federal Housing Finance Agency (FHFA) in two related lawsuits alleging that Barclays and its affiliates misrepresented the investment quality of certain residential mortgage-backed securities they sold to Fannie Mae and Freddie Mac in violation of state and federal securities laws, according to court documents released on April 24 (Federal Housing Finance Agency v. Barclays Bank PLC, et al., No. 11-6190, S.D. N.Y.; and Federal Housing Finance Agency v. Ally Financial Inc., No. 11-7010, S.D. N.Y.).
DENVER - A shareholder told a federal court in Colorado on April 22 that his second amended complaint against certain of a company's directors and officers contains particularized facts showing that false or misleading statements were made and that presuit demand upon the company's board would have been futile (John Seni, Derivatively on Behalf of CIBER, Inc. v. David C. Peterschmidt, et al., No. 12-cv-00320, D. Colo.).
LAS VEGAS - A company shareholder argued in a federal court in Nevada on April 17 that he has adequately shown that a majority of the company's directors are not disinterested and that, therefore, presuit demand upon the company's board would have been futile (In re MGM Mirage Shareholder Derivative Litigation, No. 09-cv-01815, D. Nev.).
WILMINGTON, Del. - A shareholder claimed in a federal court in Delaware on April 17 that certain of a company's directors and officers breached their fiduciary duties by disseminating false and misleading information regarding a proposed merger that failed to come to fruition (Jim Fitzgerald v. Roy Armes, et al., No. 14-cv-00479, D. Del.).
LOS ANGELES - A company shareholder said in a federal court in California on April 15 that certain of the company's directors and officers breached their fiduciary duty by causing the company to make false and misleading statements and that a number of the directors and officers sold stock before the news that the statements were false broke (Marc Hagan v. Deepak Chopra, et al., No. 14-cv-02910, C.D. Calif.).
LOS ANGELES - A purchaser of Herbalife Ltd. stock filed a class complaint in California federal court on April 14 accusing the company and its executives of hiding the fact that the company's operations were based on a pyramid scheme, resulting in artificially inflated stock prices before the disclosure (Abdul Awad, et al. v. Herbalife Ltd., et al., No. 14-2850, C.D. Calif.).
NEW ORLEANS - Dismissal of an investor lawsuit against the Securities and Exchange Commission was proper, a Fifth Circuit U.S. Court of Appeals panel ruled April 14, because the investors' claims fall under the discretionary function exception of the Federal Tort Claims Act (FTCA) (Reuel Anderson, et al. v. United States of America, No. 13-30897, 5th Cir.).
WILMINGTON, Del. - A Delaware vice chancellor on April 8 denied a motion for summary judgment and said evidence regarding accusations brought by shareholders against certain of a company's directors and officers should be developed at trial (Herbert Chen, et al. v. Robert Howard-Anderson, et al., No. 5878-VCL, Del. Chanc.; 2014 Del. Ch. LEXIS 50).
BOSTON - A federal judge in Massachusetts on April 7 denied motions to dismiss in a securities class action lawsuit, ruling that lead plaintiffs have properly pleaded their federal securities law claims at this point in the litigation (Silverstrand Investments, et al. v. AMAG Pharmaceuticals Inc., et al., No. 10-10470, D. Mass.; 2014 U.S. Dist. LEXIS 48231).
SAN JOSE, Calif. - A purported shareholder told a federal court in California on April 7 that certain directors and officers of an electronics company breached their fiduciary duties by willfully infringing on certain patents (Lee Voss v. Sehat Sutardja, et al., No. 14-cv-01581, N.D. Calif.).
CHICAGO - A federal judge in Illinois on April 7 granted certain of a company's directors' and officers' motion to dismiss a shareholder derivative lawsuit because the alleged breaches of fiduciary duty were the product of valid business judgment (Jan Donnawell v. Daniel Hamburger, et al., No. 12-cv-09074, N.D. Ill.; 2014 U.S. Dist. LEXIS 47831).
WILMINGTON, Del. - A group of creditors who are also securities claimants in separate litigation related to the Chapter 11 bankruptcy of Overseas Shipholding Group Inc. (OSG) on April 4 filed a brief in the U.S. Bankruptcy Court for the District of Delaware opposing OSG's motion seeking approval of its disclosure statement regarding its joint plan of reorganization "because it fails to provide sufficient information" required by the Bankruptcy Code (In Re: Overseas Shipholding Group Inc., No. 12-20000, Chapter 11, D. Del. Bkcy.).
WILMINGTON, Del. - Nortel Networks Corp. (NNC), the Canadian entity that filed a Chapter 15 bankruptcy proceeding in the U.S. Bankruptcy Court for the District of Delaware in conjunction with the Chapter 11 bankruptcy petition that was filed by its parent company Nortel Networks Inc. (NNI), on April 4 filed a brief in the Bankruptcy Court objecting to NNI's motion for modification to the recognition order so that NNI could pursue securities litigation against the directors and officers of NNC (In Re: Nortel Networks Corporation, No. 09-10164, Chapter 15, D. Del. Bkcy.).
DAYTON, Ohio - Defendants in a shareholder derivative lawsuit claimed April 2 that a plaintiff was not a shareholder in the company on the date he brought the suit and, therefore, he lacks standing to sue derivatively on behalf of a corporation (J. Robert Smith v. Peter C. Wallace, et al., No. 12-cv-00281, S.D. Ohio).
NEW YORK - A federal judge in New York on March 31 granted several motions to dismiss filed by defendants in a securities class action lawsuit stemming from the News Corp. phone-hacking scandal in the United Kingdom, ruling that a pension fund has failed to plead personal jurisdiction over certain defendants and an actionable misrepresentation among others (Lewis Wilder, et al. v. News Corp., et al., No. 11-4947, S.D. N.Y.).
NEW YORK - A federal judge in New York on March 31 granted in part and denied in part a motion to dismiss filed by JPMorgan Chase & Co. and certain of its current and former executive officers, ruling that lead plaintiffs have properly pleaded scienter and a material misrepresentation against certain defendants, but not others (In re JPMorgan Chase & Co. Securities Litigation, No. 12-3852, S.D. N.Y.; 2014 U.S. Dist. LEXIS 44050).
BOSTON - Dismissal of a shareholder class action lawsuit against a biotechnology company and certain of its officers and directors is proper because the lead plaintiff in the action lacks standing to bring its federal securities law claims, a federal judge in Massachusetts ruled March 31 (City of Bristol Pension Fund v. Vertex Pharmaceuticals Inc., et al., No. 12-11654, D. Mass.; 2014 U.S. Dist. LEXIS 43400).
SANTA ANA, Calif. - Hewlett-Packard Co. (HP) and certain of its current and former executive officers have agreed to pay $57 million to settle claims that they misrepresented the company's business condition in violation of federal securities laws, according to a motion for preliminary approval of settlement filed by lead plaintiffs on March 31 (In re Hewlett-Packard Co. Securities Litigation, No. 11-1404, C.D. Calif.).