LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - Panel: Court Properly Ruled That Securities Claims Were Barred By Precedent

ATLANTA - A federal district court did not err in dismissing a securities class action lawsuit against home security company The ADT Corp., its CEO and others because shareholder claims are barred pursuant to precedent and because the shareholders failed to plead any material misrepresentation or scienter, an 11th Circuit U.S. Court of Appeals panel ruled in a per curiam opinion filed Sept. 9 (IBEW Local 595 Pension and Money Purchase Pension Plans, et al. v. The ADT Corp., et al., No. 15-13595, 11th Cir.; 2016 U.S. App. LEXIS 16454).

Mealey's Securities/D&O Liability - St. Jude: Hacking Report Was Scheme To Profit By Short Selling

MINNEAPOLIS - Heart device maker St. Jude Medical Inc. on Sept. 7 sued a hedge fund and a cybersecurity research firm for defamation for issuing a report that St. Jude's devices can be hacked and that patients should disable remote monitoring devices (St. Jude Medical, Inc. v. Muddy Waters Consulting LLC, et al., No. 16-03002, D. Minn.).

Mealey's Securities/D&O Liability - Shareholders Failed To Correct Loss Causation Deficiencies, Judge Rules

SAN FRANCISCO - Shareholders have failed to show how an anonymous blogger report is adequate to serve as a corrective disclosure to support loss causation, a federal judge in California ruled Sept. 2 in dismissing the shareholders' amended complaint (Francis J. Bonanno v. Cellular Biomedicine Group Inc., et al., No. 15-1795, N.D. Calif.; 2016 U.S. Dist. LEXIS 119194).

Mealey's Litigation Procedure - High Court Grants Extension Of Time To File Petition In Best Buy Securities Suit

WASHINGTON, D.C. - The U.S. Supreme Court has granted shareholders a more than a month's extension to file a petition for writ of certiorari in a securities class action lawsuit in which the shareholders are challenging the Eighth Circuit U.S. Court of Appeals' reversal of a lower court's grant of class certification, according to a letter filed Sept. 1 in the Eighth Circuit (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 - Infrastructure Assets Design Company Sued For Alleged Securities Law Violations

LOS ANGELES - A shareholder filed a securities class action lawsuit against an infrastructure assets designer and certain of its current and former executive officers on Sept. 1 in California federal court, alleging that the defendants concealed issues with the company's business, operational and compliance policies in violation of federal securities laws (William Graves v. AECOM, et al., No. 16-6605, C.D. Calif.).

Mealey's Securities/D&O Liability - Amici Ask 2nd Circuit To Endorse Price Impact Approach In Securities Suit

NEW YORK - The Second Circuit U.S. Court of Appeals should rule in favor of shareholders in an appeal of a securities class action lawsuit ruling and should require defendants to "show the absence of price impact by a preponderance of evidence" in rebutting a Basic Inc. v. Levinson presumption, a group of securities law professors argue in a Sept. 1 amicus curiae brief (In re Petrobas Securities Litigation, No. 16-1914, 2nd Cir.).

Mealey's Securities/D&O Liability - High Court Grants Extension Of Time To File Petition In Best Buy Securities Suit

WASHINGTON, D.C. - The U.S. Supreme Court has granted shareholders a more than a month's extension to file a petition for writ of certiorari in a securities class action lawsuit in which the shareholders are challenging the Eighth Circuit U.S. Court of Appeals' reversal of a lower court's grant of class certification, according to a letter filed Sept. 1 in the Eighth Circuit (IBEW Local 98 Pension Fund, et al. v. Best Buy Co., Inc., et al., No. 14-3178, 8th Cir.).

Mealey's Labor & Employment - 5th Circuit Panel Affirms Bonus Arrangement Is Not An ERISA Plan

NEW ORLEANS - A Fifth Circuit U.S. Court of Appeals panel on Aug. 31 affirmed that a bonus agreement offered by an employer to a select number of employees does not qualify as an Employee Retirement Income Security Act employee welfare benefit plan because "the purchase of insurance alone is insufficient to demonstrate an ERISA plan" (Sarah Mozingo Martin, et al. v. Trend Personnel Services, et al., No. 15-11263, 5th Cir.; 2016 U.S. App. LEXIS 16146).

Mealey's Litigation Procedure - Medical Device Maker Seeks Dismissal Of Securities Fraud Class Action Claims

NEW YORK - A securities class action lawsuit against a medical device maker and its CEO should be dismissed because the lead plaintiff has failed to show that the defendants made any material misrepresentations or acted with scienter in statements they made regarding the company's heart pump, the defendants argue in an Aug. 30 motion to dismiss (In re HeartWare International Inc. Securities Litigation, No. 16-0520, S.D. N.Y.).

Mealey's PI/Product Liability - Expert Testimony Fails To Support Atmosphere Of Violence Claim, Panel Finds

JACKSON, Miss. - A woman who suffered injuries during a robbery in a parking lot failed to provide sufficient testimony from a safety and security expert to support an atmosphere-of-violence claim, a Mississippi appeals panel affirmed Aug. 30, noting that an incident of robbery in the previous five years was not enough to put a company on notice of foreseeable danger (Pearlie Wright v. R.M. Smith Investments, L.P., No. 2015-CA-00199-COA, Miss. App.; 2016 Miss. App. LEXIS 566).

Mealey's Securities/D&O Liability - Medical Device Maker Seeks Dismissal Of Securities Fraud Class Action Claims

NEW YORK - A securities class action lawsuit against a medical device maker and its CEO should be dismissed because the lead plaintiff has failed to show that the defendants made any material misrepresentations or acted with scienter in statements they made regarding the company's heart pump, the defendants argue in an Aug. 30 motion to dismiss (In re HeartWare International Inc. Securities Litigation, No. 16-0520, S.D. N.Y.).

Mealey's Litigation Procedure - Expert Testimony Fails To Support Atmosphere Of Violence Claim, Panel Finds

JACKSON, Miss. - A woman who suffered injuries during a robbery in a parking lot failed to provide sufficient testimony from a safety and security expert to support an atmosphere-of-violence claim, a Mississippi appeals panel affirmed Aug. 30, noting that an incident of robbery in the previous five years was not enough to put a company on notice of foreseeable danger (Pearlie Wright v. R.M. Smith Investments, L.P., No. 2015-CA-00199-COA, Miss. App.; 2016 Miss. App. LEXIS 566).

Mealey's Litigation Procedure - California Federal Judge Dismisses ERISA Class Action Against Chevron Corp.

OAKLAND, Calif. - A California federal judge on Aug. 29 granted Chevron Corp.'s motion to dismiss an Employee Retirement Income Security Act class action against it alleging breach of fiduciary duty for failure to state a claim (Charles E. White, et al. v. Chevron Corp., et al., No. 16-cv-0793, N.D. Calif.; 2016 U.S. Dist. LEXIS 115875).

Mealey's Labor & Employment - California Federal Judge Dismisses ERISA Class Action Against Chevron Corp.

OAKLAND, Calif. - A California federal judge on Aug. 29 granted Chevron Corp.'s motion to dismiss an Employee Retirement Income Security Act class action against it alleging breach of fiduciary duty for failure to state a claim (Charles E. White, et al. v. Chevron Corp., et al., No. 16-cv-0793, N.D. Calif.; 2016 U.S. Dist. LEXIS 115875).

Mealey's Litigation Procedure - Magistrate Judge Recommends That Class Be Certified In Securities Class Action

TYLER, Texas - Determining that a securities class action lawsuit meets the Federal Rules of Civil Procedure 23(a) and 23(b)(2) requirements for class certification, a federal magistrate judge in Texas on Aug. 29 recommended that a class certification motion be granted and a pension fund be appointed as lead plaintiff (Alan B. Marcus v. J.C. Penney Co. Inc., et al., No. 13-0736, E.D. Texas; 2016 U.S. Dist. LEXIS 115795).

Mealey's Securities/D&O Liability - Magistrate Judge Recommends That Class Be Certified In Securities Class Action

TYLER, Texas - Determining that a securities class action lawsuit meets the Federal Rules of Civil Procedure 23(a) and 23(b)(2) requirements for class certification, a federal magistrate judge in Texas on Aug. 29 recommended that a class certification motion be granted and a pension fund be appointed as lead plaintiff (Alan B. Marcus v. J.C. Penney Co. Inc., et al., No. 13-0736, E.D. Texas; 2016 U.S. Dist. LEXIS 115795).

Mealey's Securities/D&O Liability - Lead Plaintiffs Failed To Plead Demand Futility In Shareholder Derivative Suit

OAKLAND, Calif. - A federal judge in California on Aug. 26 granted a motion to dismiss filed by defendants in a shareholder derivative lawsuit, ruling that the lead plaintiffs lacked standing to bring their claims and failed to properly plead demand futility pursuant to the Delaware Supreme Court's ruling in Rales v. Blasband (In re Rocket Fuel Inc. Derivative Litigation, No. 15-4625, N.D. Calif.; 2016 U.S. Dist. LEXIS 115023).

Mealey's Litigation Procedure - Maryland Federal Judge Consolidates ERISA Cases, Appoints Lead Counsel

BALTIMORE - A Maryland federal judge on Aug. 24 consolidated two Employee Retirement Income Security Act class actions against Bon Secours Health System Inc. and appointed interim lead class counsel (Arlene Hodges, et al. v. Bon Secours Health System Inc., et al., No. RDB-16-1079, Carolyn Miller, et al. v. Bon Secours Health System Inc., et al., No. RDB-16-1150, D. Md.; 2016 U.S. Dist. LEXIS 113414).

Mealey's Labor & Employment - Maryland Federal Judge Consolidates ERISA Cases, Appoints Lead Counsel

BALTIMORE - A Maryland federal judge on Aug. 24 consolidated two Employee Retirement Income Security Act class actions against Bon Secours Health System Inc. and appointed interim lead class counsel (Arlene Hodges, et al. v. Bon Secours Health System Inc., et al., No. RDB-16-1079, Carolyn Miller, et al. v. Bon Secours Health System Inc., et al., No. RDB-16-1150, D. Md.; 2016 U.S. Dist. LEXIS 113414).

Mealey's Litigation Procedure - $13 Million Settlement, Service Award Approved In Home Depot Data Breach Suit

ATLANTA - Following a Georgia federal judge's final approval of a $13 million settlement between The Home Depot Inc. and a class of consumers suing over a 2014 data breach, judgment was issued on Aug. 24 memorializing an accompanying award of almost $7.8 million in service awards for the class (In re: The Home Depot Inc., Customer Data Security Breach Litigation, No. 1:14-md-02583, N.D. Ga.).

Mealey's Litigation Procedure - 2nd Circuit Remands Securities Class Action For Consideration Of New Evidence

NEW YORK - Although a federal district court did not err in dismissing a federal securities class action complaint against BlackBerry Limited and certain of its former executive officers for failure to plead scienter, it is unclear whether newly discovered evidence submitted by lead plaintiffs was insufficient to determine whether the court properly denied their motion for reconsideration, a Second Circuit U.S. Court of Appeals panel ruled Aug. 24 (Todd Cox, et al. v. BlackBerry Limited, et al., No. 15-3991, 2nd Cir.).

Mealey's Securities/D&O Liability - 2nd Circuit Remands Securities Class Action For Consideration Of New Evidence

NEW YORK - Although a federal district court did not err in dismissing a federal securities class action complaint against BlackBerry Limited and certain of its former executive officers for failure to plead scienter, it is unclear whether newly discovered evidence submitted by lead plaintiffs was insufficient to determine whether the court properly denied their motion for reconsideration, a Second Circuit U.S. Court of Appeals panel ruled Aug. 24 (Todd Cox, et al. v. BlackBerry Limited, et al., No. 15-3991, 2nd Cir.).

Mealey's Labor & Employment - 7th Circuit Panel: Breach Claims Against GreatBanc Were Plausibly Alleged

CHICAGO - A Seventh Circuit U.S. Court of Appeals panel on Aug. 25 reversed the dismissal of Employee Retirement Income Security Act claims against the trustee of an employee stock ownership plan (ESOP) because, it said, the plaintiffs plausibly alleged both a prohibited transaction and a breach of fiduciary duty (Lisa Allen, et al. v. GreatBanc Trust Co., No. 15-3569, 7th Cir.; 2016 U.S. App. LEXIS 15704).

Mealey's Litigation Procedure - New York Federal Judge Dismisses 5 Defendants From ERISA Class Action

NEW YORK - A New York federal judge on Aug. 23 granted five defendants' motion to dismiss claims against them in a second amended class action complaint against 12 banks and their affiliates under the Employee Retirement Income Security Act because the plaintiffs failed to adequately plead that the defendants were ERISA fiduciaries or "parties in interest" (Doris Sue Allen, et al. v. Bank of America Corp., et al., No. 1:15cv4285, S.D. N.Y.; 2016 U.S. Dist. LEXIS 112407).

Mealey's Securities/D&O Liability - Panel Reverses Own Ruling In Ponzi Scheme Suit On Guidance From State High Court

NEW ORLEANS - Following guidance from the Texas Supreme Court, a Fifth Circuit U.S. Court of Appeals panel on Aug. 22 affirmed a lower court's ruling that granted summary judgment in favor of The Golf Channel Inc. in a clawback lawsuit stemming from the R. Allen Stanford Ponzi scheme, ruling that the Supreme Court's ruling clarified the "reasonably equivalent value" standard established under the Texas Uniform Fraudulent Transfer Act (TUFTA) (Ralph S. Janvey v. The Golf Channel Inc., No. 13-11305, 5th Cir.; 2016 U.S. App. LEXIS 15407).