LexisNexis® Legal Newsroom
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).

Mealey's Securities/D&O Liability - Judge: Investors Failed To Plead Scienter In Securities Suit Against Drug Maker

BOSTON - Dismissal of an amended complaint in a securities class action lawsuit against a drug maker and certain of its current and former executive officers is proper, a federal judge in Massachusetts ruled April 5, because shareholders failed to plead an actionable misstatement or omission and failed to plead scienter (William Kader v. Sarepta Therapeutics Inc., et al., No. 14-14318, D. Mass.; 2016 U.S. Dist. LEXIS 46025).

Mealey's Securities/D&O Liability - Federal Judge Trims Federal Securities Law Claims Against Ruby Tuesday, Others

NASHVILLE, Tenn. - A federal judge in Tennessee on March 31 partially denied a motion to dismiss filed by defendants in a securities class action lawsuit, ruling that although shareholders failed to plead an actionable misrepresentation with regard to the defendants' alleged misstatements and omissions regarding the defendant company's repositioning plan, they have pleaded an actionable misstatement with regard to misrepresentations made concealing the poor performance of a restaurant chain the company had recently purchased (Dennis Krystek v. Ruby Tuesday Inc., et al., No. 14-1119, M.D. Tenn.; 2016 U.S. Dist. LEXIS 43523).

Mealey's Securities/D&O Liability - Judge: Lead Plaintiff Failed To Plead Actionable Misstatement In Securities Suit

NEW YORK - A federal judge in New York on March 30 granted motions to dismiss in a securities class action lawsuit, ruling that a retirement system failed to plead any actionable misstatements or omission in making its federal securities law claims (Waterford Township Police & Fired Retirement System v. Regional Management Corp., et al., No. 14-3876, S.D. N.Y.; 2016 U.S. Dist. LEXIS 42542).

Mealey's Securities/D&O Liability - Judge Denies Investors' Attempt To Opt Out Of Securities Suit Settlement Class

PHILADELPHIA - A federal judge in Pennsylvania on March 28 denied motions filed by investors in a securities class action lawsuit to grant them an extension to opt out of a settlement class, ruling that they were provided with "sufficient notice and due process protections" but failed to meet the opt-out deadline (In re DVI Inc. Securities Litigation, No. 03-5336, E.D. Pa.; 2016 U.S. Dist. LEXIS 40473).

Mealey's Securities/D&O Liability - Shareholders Properly Pleaded Scienter In Securities Class Action, Panel Rules

NEW YORK - A Second Circuit U.S. Court of Appeals panel on March 29 substantially reversed a federal district court's ruling dismissing a securities class action lawsuit with prejudice, ruling that the lead plaintiffs in the action properly pleaded scienter with regard to many of the claims (Indiana Public Retirement System, et al. v. SAIC Inc., et al., No. 14-4140, 2nd Cir.; 2016 U.S. Dist. LEXIS 5748).

Mealey's Securities/D&O Liability - Hertz Global, Others Move To Dismiss All Claims In Securities Class Action

NEWARK, N.J. - In separate motions filed between March 24 and March 28, defendants in a securities class action complaint asked a federal judge in New Jersey to dismiss a fourth amended complaint filed by two pension funds, saying the funds failed to plead an actionable misrepresentation or scienter in making their federal securities law claims (In re Hertz Global Holdings Inc. Securities Litigation, No. 13-7050, D. N.J.).