NEW YORK - JPMorgan Chase & Co. will issue a binding offer to the trustees of 330 residential mortgage-backed securities (RMBS) trusts that were issued by J.P. Morgan Chase and Bear Stearns, after reaching a $4.5 billion agreement with 21 institutional investors, according to a JPMorgan press release issued on Nov. 15.
WILMINGTON, Del. - A federal judge in Delaware on Nov. 13 dismissed a shareholder derivative suit against certain of a company's directors and officers, because the shareholder failed to prove that the defendants were financially interested in the outcome of a proxy vote (Ruth Abrams v. James L. Wainscott, et al., No. 11-cv-00297, D. Del.; 2013 U.S. Dist. LEXIS 161556).
WASHINGTON, D.C. - A District of Columbia federal judge on Nov. 8 granted in part and denied in part a plaintiff's motion to strike affirmative defenses in a lawsuit challenging the U.S. government's takeover of American International Group Inc. (AIG), ruling that the government may make all of its affirmative defenses but its laches defense (Starr International Co. v. The United States, No. 11-779C, Fed. Clms.).
SAN JOSE, Calif. - A federal judge in California on Nov. 6 ordered a fund manager to pay nearly $7.8 million in disgorgement, prejudgment interest and civil penalties for misrepresenting the investment activity of three funds he was managing in violation of the anti-fraud provisions of the federal securities laws (Securities and Exchange Commission v. Small Business Capital Corp., et al., No. 12-3237, N.D. Calif.; 2013 U.S. Dist. LEXIS 159227).
NEWARK, N.J. - Summary judgment against a former employee of Autodesk Inc. who is alleged to have provided inside information to a hedge fund manager as part of an insider trading scheme is warranted because the employee's relationship with the hedge fund manager demonstrates a "personal benefit to the tipper," a federal judge in New Jersey ruled Nov. 6 (Securities and Exchange Commission v. Clay Capital Management LLC, et al., No. 11-5020, D. N.J.; 2013 U.S. Dist. LEXIS 159130).
NEW YORK - A federal district court did not err in dismissing a securities class action complaint against Freddie Mac for alleged federal securities law violations because the lead plaintiff failed to plead loss causation, a Second Circuit U.S. Court of Appeals panel ruled Nov. 5 (Central States, Southeast and Southwest Areas Pension Fund, et al. v. Federal Home Loan Mortgage Corp., et al., No. 12-4353, 2nd Cir.; 2013 U.S. App. LEXIS 22413).
NEW HAVEN, Conn. - RBS Securities Inc. will pay more than $153 million to settle claims that it misrepresented the investment quality of a $2.2 billion residential mortgage-backed security (RMB) offering it was promoting in violation of federal securities law, according to court documents filed Nov. 7 in Connecticut federal court (Securities and Exchange Commission v. RBS Securities Inc., No. 13-1643, D. Conn.).
NEW YORK - The federal judge in New York overseeing the U.S. government's civil forfeiture action against a hedge fund and certain of its related entities on Nov. 6 granted approval of a plea deal that will see the defendants paying $1.8 billion to settle claims that they engaged in a massive insider trading scheme (United States of America v. SAC Capital Advisors LP, et al., No. 13-5182, S.D. N.Y.).
NEW YORK - U.S. Bank National Association, as trustee of a mortgage loan trust, sued a Citigroup Inc. subsidiary on Oct. 31, alleging that the subsidiary breached its representations with regard to a mortgage loan purchase agreement and pooling and servicing agreement for residential mortgage-backed securities (U.S. Bank National Association v. Citigroup Global Markets Realty Corp., No. 653816/2013, N.Y. Sup., New York Co.).
SAN FRANCISCO - A federal judge in California on Oct. 30 partially dismissed a court-appointed receiver's lawsuit against a bank for alleged violations of state and federal securities laws, ruling that the receiver failed to state a claim for relief (Thomas A. Seaman v. California Business Bank, et al., No. 13-2031, N.D. Calif.; 2013 U.S. Dist. LEXIS 155919).
NEW YORK - A federal judge in New York on Oct. 28 granted in part and denied in part a lead plaintiff's motion to compel a company to provide certain documents related to U.S. Securities and Exchange Commission and U.S. Department of Justice subpoenas issued seeking information related to their investigation into the company's income tax and other financial reporting (In re Weatherford International Securities Litigation, No. 11-1646, S.D. N.Y.; 2013 U.S. Dist. LEXIS 154446).
NEW YORK - A federal judge did not err in dismissing a consolidated amended securities class action complaint against several former officers and directors of Lehman Brothers Holdings Inc. and others for alleged federal securities law violations because the new claims made in the amended complaint were untimely under the statute of limitations and statute of repose on such claims, a Second Circuit U.S. Court of Appeals panel ruled Oct. 28 (Rena Caldwell, et al. v. Roger S. Berlind, et al., No. 13-156, 2nd Cir.).
LOS ANGELES - A federal judge in California on Oct. 25 certified a class in a securities lawsuit, ruling that lead plaintiffs have met all statutory guidelines for class certification (In re China Intelligent Lighting and Electronics Inc. Securities Litigation, No. 11-2768, C.D. Calif.).
HAMMOND, Ind. - A federal judge in Indiana on Oct. 28 denied a CFS Bancorp Inc. shareholder's request for a preliminary injunction to block the merger of CFS Bancorp Inc. and First Merchants Corp., finding that an injunction "would prevent the shareholder vote from being taken based on nothing more than unspecified misrepresentations or omissions causing unspecified misrepresentations" (Jay Orlando v. CFS Bancorp Inc., et al., No. 13-0261, N.D. Ind.; 2013 U.S. Dist. LEXIS 153917).
SANTA ANA, Calif. - Dismissal of a securities class action lawsuit is not proper, a federal judge in California ruled Oct. 23, because lead plaintiffs have pleaded sufficient facts to survive a motion to dismiss (Pawel L. Kmiec v. Powerwave Technologies Inc., et al., No. 12-0222, C.D. Calif.; 2013 U.S. Dist. LEXIS 153031).
WILMINGTON, Del. - A shareholder who brought a derivative suit against a group of a company's directors and officers told a federal court in Delaware on Oct. 22 that the directors and officers have admitted that they violated the company's stock incentive plan (Philip Halpert, derivatively on behalf of AsiaInfo-Linkage, Inc. v. Steve Zhang, et al., No. 12-cv-1339, D. Del.).
FORT LAUDERDALE, Fla. - A shareholder told a federal court in Florida on Oct. 17 that certain directors and officers and others were unjustly enriched in a transaction for a controlling percentage of a company (Frederick Siegmund v. Xuelian Bian, et al., No. 12-cv-62539, S.D. Fla.).
SAN FRANCISCO - A federal judge in California gave final approval to the settlement of a shareholder derivative suit on Oct. 17, finding that the settlement was in the best interest of the shareholders and the company (In re OCZ Technology Group, Inc. Shareholder Derivative Litigation, No. 12-cv-05556, N.D. Calif.).
CHICAGO - A shareholder told an Illinois federal court on Oct. 18 that presuit demand upon a company's board of directors would have been futile and, therefore, the shareholder's derivative suit should not be dismissed (Jan Donnawell v. Daniel Hamburger, et al., No. 12-cv-09074, N.D. Ill.).
NEW YORK - A shareholder and certain of a company's directors and officers asked a New York federal court on Oct. 16 to give preliminary approval of a settlement reached regarding a shareholder derivative lawsuit (Carl Braun v. Zhiguo Fu, et al., No. 11-cv-4383, S.D. N.Y.).
WASHINGTON, D.C. - JPMorgan Chase Bank N.A. has agreed to pay $100 million and to cease and desist in the violation of provisions of the Commodity Exchange Act (CEA) for its role in manipulating a massive credit default swap (In the Matter of JPMorgan Chase Bank N.A., No. 14-01, CFTC).
NEW YORK - Although the number of new securities and business litigation filings and regulatory enforcement actions declined for the third straight quarter, they did so at a much slower pace, according to a report released Oct. 15 by industry analyst Advisen Ltd.
ALEXANDRIA, Va. - A federal judge in Virginia dismissed a shareholder derivative lawsuit against directors and officers of Capital One on Oct. 8 because, among other reasons, the shareholders failed to show that presuit demand upon the company's board of directors would have been futile (In re Capital One Derivative Shareholder Litigation, No. 12-cv-01100, E.D. Va.; 2013 U.S. Dist. LEXIS 145911).
PHOENIX - Lead plaintiffs in a securities class action lawsuit against an energy company and certain of its current and former officers and directors have properly met the statutory requirements for class certification, a federal judge in Arizona ruled Oct. 8 (Mark Smilovits v. First Solar Inc., et al., No. 12-0555, D. Ariz.).
WILMINGTON, Del. - A shareholder told a federal court in Delaware on Oct. 7 that a settlement reached with directors and officers of a corporation in a shareholder derivative lawsuit is fair, reasonable and adequate and should be approved by the court (Jared Staal, derivatively on behalf of K12 Inc. v. Andrew H. Tisch, et al., No. 12-cv-00365, D. Del.).