NEW YORK - A divided Second Circuit U.S. Court of Appeals panel on April 15 affirmed a federal district court's dismissal of a securities class action lawsuit, ruling that shareholders failed to state a claim for relief (IBEW Local Union No. 58 Pension Trust Fund and Annuity Fund v. The Royal Bank of Scotland Group PLC, et al., No. 13-3289, 2nd Cir.).
SAN FRANCISCO - After finding that a lender's attempt to enforce a security interest under a deed of trust in a nonjudicial foreclosure did not constitute debt collection, a California federal judge on April 14 dismissed a borrower's claim for violation of the Fair Debt Collection Practices Act (FDCPA) (Hung Tran v. Select Portfolio Servicing Inc., et al., No. 14-cv-05404, N.D. Calif.; 2015 U.S. Dist. LEXIS 49030).
NEW YORK - The U.S. Supreme Court's ruling in Halliburton v. Erica P. John Fund (134 S. Ct. 2398 ) had little effect on securities class action litigation in 2014 "in terms of number and types of cases being filed," according to a report released on April 10 by PricewaterhouseCoopers LLP.
LOS ANGELES - A California appeals panel on April 10 affirmed a lower court's ruling that a professional liability insurance policy's application exclusion precludes coverage for claims made against a securities broker-dealer insured involving an alleged real estate investment Ponzi scheme, finding that three undisclosed claims should have been disclosed to the insurer during the application process because they arose out of the same events as the one disclosed claim (Crown Capital Securities L.P. v. Endurance American Specialty Insurance, No. B256241, Calif. App., 2nd Dist., Div. 5.; 2015 Cal. App. LEXIS 305).
NEW HAVEN, Conn. - A federal judge in Connecticut on April 9 granted final approval to a $140 million class action settlement between Nationwide Financial Services Inc. and Nationwide Life Insurance Co. (collectively, Nationwide) and trustees of employer-sponsored pension plans on the trustees' claims that the investment service providers breached their fiduciary duties under the Employee Retirement Income Security Act by receiving revenue-sharing payments (Lou Haddock, et al. v. Nationwide Financial Services Inc., et al., No. 01-CV-1552, D. Conn.).
BOSTON - Two former officers of medical device company Acclarent Inc. on April 9 were arrested and charged with the off-label promotion of a medical device and with securities fraud related to the device (United States of America v. William Facteau, et al., No. 15-cr-10076, D. Mass.).
SAN FRANCISCO - A federal judge in California on April 7 denied United Behavioral Health's (UBH) motion to dismiss a putative class action alleging that the insurer denied claims for mental illness and substance abuse-related outpatient treatment in violation of the Employee Retirement Income Security Act (Gary Alexander, et al. v. United Behavioral Health, No. 14-cv-05337, N.D. Calif.; 2015 U.S. Dist. LEXIS 46046).
WASHINGTON, D.C. - In what it said was its "largest privacy and data security enforcement action to date," the Federal Communications Commission on April 8 announced a $25 million settlement with AT&T Services Inc. related to data breaches that occurred in three of the telecommunication carrier's offshore call centers, exposing the customer proprietary network information (CPNI) of around 280,000 U.S. customers (In the Matter of AT&T Services Inc., No. EB-TCD-14-00016243, FCC).
SAN FRANCISCO - Specific terminology need not be used to meet the requirement of Employee Retirement Income Security Act Section 403(a) that "all assets of an employee benefits plan shall be held in trust by one or more trustees," the Ninth Circuit U.S. Court of Appeals ruled April 7 (David Barboza v. California Association of Professional Firefighters, et al., Nos. 11-15472, 11-16024, 11-16081, 16082, 9th Cir.; 2015 U.S. App. LEXIS 5583).
NEW YORK - In a one-page order, the Second Circuit U.S. Court of Appeals on April 3 denied U.S. Attorney for the Southern District of New York Preet Bharara's petition for rehearing of the court's ruling overturning the conviction of an inside trader (United States of America v. Todd Newman, et al., Nos. 13-1837 and 13-1917, 2nd Cir.).
SAN FRANCISCO - Parties involved in case in which California's Accrediting Commission for Community and Junior Colleges (ACCJC) was accused of engaging in practices that violated the unlawful prong of the state's unfair competition law (UCL) when, in 2013, it terminated City College of San Francisco's (CCSF) accreditation, on April 1 filed a stipulation to dismiss an appeal following a February decision by a state court issuing a final injunction and judgment in the case that provides the CCSF a new option to secure its accreditation (People of the State of California ex rel. Dennis Herrera, San Francisco City Attorney v. Accrediting Commission for Community and Junior Colleges, No. A141237, Calif. App., 1st Dist., Div. 4).
SAN JOSE, Calif. - A federal judge in California on March 31 granted preliminary approval of a nearly $25 million securities class action settlement, ruling that the settlement has met all statutory requirements for approval (In re Celera Corp. Securities Litigation, No. 10-2604, N.D. Calif.; 2015 U.S. Dist. LEXIS 42228).
BOSTON - Dismissal of an amended securities class action complaint is proper because shareholders have failed to plead any actionable misstatement in making their federal securities law claims, a federal judge in Massachusetts ruled March 31 (Mark A. Corban v. Sarepta Therapeutics Inc., et al., No. 14-10201, D. Mass.; 2015 U.S. Dist. LEXIS 42688).
WASHINGTON, D.C. - The U.S. Supreme Court will not hear an appeal of a Second Circuit U.S. Court of Appeals ruling in a securities class action lawsuit where an investor sought determination of whether the claims made are preempted under the Securities Litigation Uniform Standards Act (SLUSA) (In re Herald, Primeo, and Thema (Dana Trezziova v. Sonja Kohn, et al.), No. 14-736, U.S. Sup.).
NEW YORK - The Employee Retirement Income Security Act and the National Labor Relations Act do not preempt a New York wage parity law governing the total compensation for home care aides, the Second Circuit U.S. Court of Appeals ruled March 27 (Concerned Home Care Providers, Inc., et al. v. Andrew M. Cuomo, et al., No. 13-3790-cv, 2nd Cir.; 2015 U.S. App. LEXIS 4973).
WASHINGTON, D.C. - The U.S. Supreme Court on March 30 said it will not hear an appeal of a Second Circuit U.S. Court of Appeals ruling in a securities class action lawsuit where an investor sought determination of whether the claims made are preempted under the Securities Litigation Uniform Standards Act (SLUSA) (In re Herald, Primeo, and Thema [Dana Trezziova v. Sonja Kohn, et al.], No. 14-736, U.S. Sup.).