LexisNexis® Legal Newsroom
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.).

Mealey's Securities/D&O Liability - Panel Denies Rehearing, Reverses Court's Dismissal In Securities Class Action

SAN FRANCISCO - A Ninth Circuit U.S. Court of Appeals panel on March 26 denied a motion for panel rehearing in a securities class action lawsuit and issued an amended memorandum reversing and remanding a federal district court's dismissal of the action for failure to plead falsity (In re Finisar Corp. Securities Litigation, No. 13-17199, 9th Cir.; 2016 U.S. App. LEXIS 5653).

Mealey's Securities/D&O Liability - High Court Won't Hear Banks' Appeal Of 5th Circuit Securities Fraud Suit Ruling

WASHINGTON, D.C. - The U.S. Supreme Court on March 28 declined review of a Fifth Circuit U.S. Court of Appeals ruling overturning a lower court's decision that claims in a securities fraud lawsuit were not timely under the Texas Securities Act's (TSA) five-year statute of repose when they were brought (RBS Securities Inc., et al. v. Federal Deposit Insurance Corp., No. 15-783, U.S. Sup.).

Mealey's Securities/D&O Liability - High Court Declines Review Of Jurisdictional Question In SEC Proceedings

WASHINGTON, D.C. - The U.S. Supreme Court on March 28 declined to hear an appeal in a declaratory judgment suit that sought determination of whether Securities and Exchange Commission administrative law proceedings deprive federal district courts of subject matter jurisdiction (Laurie A. Bebo v. Securities and Exchange Commission, No. 15-997, U.S. Sup.; 2016 U.S. LEXIS 2225).

Mealey's Securities/D&O Liability - Judge Certifies Shareholder Class In Securities Class Action Lawsuit

NEW YORK - A federal judge in New York on March 23 granted a motion for class certification in a securities class action lawsuit, ruling that the lead plaintiffs have met all statutory requirements for certification of the investor class (In re Barrick Gold Securities Litigation, No. 13-3851, S.D. N.Y.; 2016 U.S. Dist. LEXIS 37970).

Mealey's Securities/D&O Liability - Novartis To Pay $25M To Settle International Bribery Claims In SEC Action

WASHINGTON, D.C. - Pharmaceutical company Novartis AG will pay $25 million to settle claims that it violated provisions of the Foreign Corrupt Practices Act (FCPA) by engaging in "pay-to-prescribe" scheme to increase sales of its products in China, according to a Securities and Exchange Commission administrative proceeding order filed March 23 (In the Matter of Novartis AG, No. 3-17177, SEC).

Mealey's Securities/D&O Liability - Judge Grants Stay In SEC's Securities Fraud Lawsuit Against Shkreli

NEW YORK - A federal judge in New York on March 22 granted the U.S. government's motion to intervene and stay proceedings in the Securities and Exchange Commission's securities fraud lawsuit against alleged Ponzi scheme operator Martin Shkreli and former Retrophin Inc. outside counsel Evan Greebel, ruling that a complete stay is appropriate pending resolution of the government's criminal proceedings against the defendants (Securities and Exchange Commission v. Martin Shkreli, et al., No. 15-7175, E.D. N.Y.; 2016 U.S. Dist. LEXIS 36734).

Mealey's Securities/D&O Liability - Judge: Shareholders In Securities Class Action Suit Failed To Plead Scienter

NEW YORK - Dismissal of a securities class action lawsuit is proper because shareholders failed to plead scienter in making their federal securities law claims, a federal judge in New York ruled March 21 (In re DNTW Chartered Accountants Securities Litigation, No. 13-4632, S.D. N.Y.; 2016 U.S. Dist. LEXIS 36661).

Mealey's Securities/D&O Liability - Judge: Exchange Company's Post-ACA Guidance Didn't Violate Securities Law

SAN FRANCISCO - A health exchange company's officer's opinions regarding their financial health after passage of the Patient Protection and Affordable Care Act (ACA) and forward-looking statements with adequate warnings do not support class action claims under securities law, a federal judge in California held March 14 (Jeffrey West v. eHealth Inc., et al., No. 15-360, N.D. Calif.; 2016 U.S. Dist. LEXIS 33429).

Mealey's Securities/D&O Liability - Judge: Investors Fail To Meet Adequacy Requirement As Class Representatives

KANSAS CITY, Kan. - A federal judge in Kansas on March 14 denied a motion to certify a class of investors in a securities class action lawsuit, ruling that investors failed to show, as statutorily required, that they or their choice of lead counsel would adequately represent the proposed class (Stan Better, et al. v. YRC Worldwide Inc., et al., No. 11-2072, D. Kan.; 2016 U.S. Dist. LEXIS 32664).

Mealey's Securities/D&O Liability - Judge Denies Motion To Dismiss In Securities Suit Against Chinese Company

LOS ANGELES - Without providing further detail, a federal judge in California on March 15 denied a motion to dismiss filed by defendants in a securities class action lawsuit, ruling that the defendants' arguments should be brought as a motion for summary judgment (Joseph Fragala v. 500.com Limited, et al., No. 15-1463, C.D. Calif.).

Mealey's Securities/D&O Liability - Judge: Defendants Did Not Meet Requirements In Seeking Appeal In Securities Suit

HOUSTON - A federal judge in Texas on March 14 denied three motions for certification of an order for interlocutory appeal in a securities class action lawsuit, ruling that the issues raised by defendants in the action failed to meet statutory requirements for certification (In re Cobalt International Energy Inc. Securities Litigation, No. 14-3428, S.D. Texas; 2016 U.S. Dist. LEXIS 32173).

Mealey's Securities/D&O Liability - Panel: No Fraud Exception To Attorney Immunity Exists In Ponzi Scheme Suit

NEW ORLEANS - Because the Texas Supreme Court has clarified that no "fraud exception" to attorney immunity exists, a federal district court erred in denying dismissal of related securities lawsuits stemming from the massive R. Allen Stanford Ponzi scheme, a Fifth Circuit U.S. Court of Appeals panel ruled March 10 (Proskauer Rose LLP, et al. v. Samuel Troice, et al., No. 15-10500, 5th Cir.).

Mealey's Securities/D&O Liability - Insurer To Pay $219M To Settle Claims In Securities Class Action Lawsuit

RICHMOND, Va. - An insurance holding company will pay $219 million to settle claims filed in a Virginia federal court that it issued misrepresentations regarding the company's business and financial condition in violation of federal securities laws, according to a press release issued by the company on March 11 (In re Genworth Financial Inc. Securities Litigation, No. 14-682, E.D. Va.).

Mealey's Securities/D&O Liability - Judge: Investors Failed To Plead Scienter, Actionable Misstatements

NEW YORK - Dismissal of a consolidated amended securities class action complaint against a Chinese developer and publisher of mobile games and certain of its executive officers is proper because shareholders failed to plead any actionable misrepresentations or omissions or scienter in making their federal securities law claims, a federal judge in New York ruled March 7 (In re China Mobile Games & Entertainment Group Ltd. Securities Litigation, No. 14-4471, S.D. N.Y.; 2016 U.S. Dist. LEXIS 29258).

Mealey's Securities/D&O Liability - 2nd Circuit Panel Affirms Dismissal Of Securities Class Action Pursuant To Omnicare

NEW YORK - A federal district court did not err in dismissing two related securities class action lawsuits for failure to plead a material misrepresentation pursuant to the U.S. Supreme Court's ruling in Omnicare Inc., et al. v. The Laborers District Council Construction Industry Pension Fund and The Cement Masons Local 526 Combined Funds because the defendants' optimistic statements were not misleading, a Second Circuit U.S. Court of Appeals panel ruled March 7 (Gen. Partner Glenn Tongue, et al. v. Sanofi, et al., Nos. 15-588 and 15-623, 2nd Cir.; 2016 U.S. App. LEXIS 4107).

Mealey's Securities/D&O Liability - Federal Judge Trims Claims In Securities Class Action Against Semiconductor Maker

SAN FRANCISCO - A federal judge in California on March 4 granted in part and denied in part motions to dismiss in a securities class action lawsuit, ruling that although shareholders properly pleaded scienter, loss causation and an actionable misrepresentation, they lack standing to bring claims pursuant to the Securities Act of 1933 (Keith Thomas, et al. v. Magnachip Semiconductor Corp., et al., No. 14-1160, N.D. Calif.; 2016 U.S. Dist. LEXIS 28077).

Mealey's Securities/D&O Liability - Judge Allows Testimony In Securities Fraud Lawsuit On Fiduciary Duty Standards

ALBANY, N.Y. - In a securities fraud action filed by employees, a New York federal judge on March 7 allowed certain testimony from defense experts on fiduciary duty standards and when the employer should have disclosed a financial investment offer (Clifford P. Beede, et al. v. Stiefel Laboratories, Inc. and Charles W. Stiefel, No. 13-120, N.D. N.Y.; 2016 U.S. Dist. LEXIS 28304).

Mealey's Securities/D&O Liability - Judge Grants Preliminary Approval Of $9M Securities Class Action Settlement

SAN FRANCISCO - A federal judge in California on March 4 granted preliminary approval of a settlement in a securities class action lawsuit against a company and certain of its executive officers, ruling that the settlement meets all statutory requirements for settlement (In re Vocera Communications Inc. Securities Litigation, No. 13-3567, N.D. Calif.).

Mealey's Securities/D&O Liability - Federal Judge Trims Claims In Securities Class Action Over FDA Drug Approval

TRENTON, N.J. - A federal judge in New Jersey on March 2 granted in part and denied in part a motion to dismiss filed by defendants in a securities class action lawsuit, ruling that although lead plaintiffs have properly pleaded their federal securities law claims against a pharmaceutical company, they have failed to do so against a number of the company's current and former officers and directors (Bing Li v. Aeterna Zentaris Inc., et al., No. 14-7081, D. N.J.; 2016 U.S. Dist. LEXIS 26772).

Mealey's Securities/D&O Liability - Evidence Of Recantations Not Sufficient In Securities Class Action, Judge Rules

NEW YORK - A federal judge in New York on March 3 denied a motion for reconsideration of a previous order denying a motion to dismiss filed by defendants in a securities class action lawsuit, ruling that the recantation of information by confidential witnesses is not sufficient enough to grant reconsideration (In re Genworth Financial Inc. Securities Litigation, No. 14-2392, S.D. N.Y.).

Mealey's Securities/D&O Liability - Panel: District Court Provided Jury With Proper Instruction In Securities Suit

ATLANTA - A federal judge did not provide a jury with improper jury instructions because the instruction the judge provided was "a correct statement of federal securities law," an 11th Circuit U.S. Court of Appeals panel ruled March 1 (Richard L. Fried v. Stiefel Laboratories Inc., et al., No. 14-14790, 11th Cir.; 2016 U.S. App. LEXIS 3739).

Mealey's Securities/D&O Liability - Judge Certifies Class In Securities Class Action Against Urban Outfitters

PHILADELPHIA - A federal judge in Pennsylvania on Feb. 29 granted a lead plaintiff's motion for class certification in a securities class action lawsuit, ruling that the lead plaintiff has met all statutory requirements for class certification (In re Urban Outfitters Inc. Securities Litigation, No. 13-5978, E.D. Pa.; 2016 U.S. Dist. LEXIS 24915).