PHILADELPHIA- A spouse lacks standing to assert a claim under the Employee Retirement Income Security Act against his spouse's former employer regarding an alleged failure to timely send notice for health insurance coverage because the spouse was not a beneficiary or participant in the plan, the Third Circuit U.S. Court of Appeals affirmed June 13 in an unpublished opinion (John Sacchi v. Katheryn J. Luciani, et al., No. 15-1453, 3rd Cir.; 2016 U.S. App. LEXIS 10651).
PHILADELPHIA - Urban Outfitters Inc. and certain of its executive officers will pay $8.5 million to settle claims that they misrepresented the clothing retailer's business and financial condition in violation of federal securities laws, according to a stipulation of settlement filed June 8 in Pennsylvania federal court by the lead plaintiff in the action (In re Urban Outfitters Inc. Securities Litigation, No. 13-5978, E.D. Pa.; 2016 U.S. Dist. LEXIS 24915).
PASADENA, Calif. - A federal district court applied the proper pleading standard in determining that a shareholder failed to plead scienter in making his federal securities law claims against a pharmaceutical company and certain of its executive officers, a Ninth Circuit U.S. Court of Appeals panel ruled June 8 in affirming the district court's ruling (Nathaniel L. Anderson v. Peregrine Pharmaceuticals Inc., et al., No. 14-55882, 9th Cir.).
WASHINGTON, D.C. - In a June 8 order, the Securities and Exchange Commission penalized Morgan Stanley Smith Barney LLC $1 million for failing to properly safeguard its customers' personally identifiable information (PII), which led to an employee's misappropriation of hundreds of thousands of customers' information and its being posted on certain websites (In the Matter of Morgan Stanley Smith Barney LLC, No. 3-17280, SEC).
BROOKLYN, N.Y. - Alleged Ponzi scheme mastermind Martin Shkreli and his alleged accomplice, Evan Greebel, each pleaded not guilty to a newly filed claim of conspiracy to commit securities fraud in a superseding indictment, according to court documents filed in New York federal court on June 7 (United States of America v. Martin Shkreli, No. 15-637, E.D. N.Y.).
NEW YORK - A federal judge in New York on June 7 appointed a pension fund as lead plaintiff in a securities class action lawsuit, ruling that the fund has met all statutory requirements to serve as lead plaintiff (Juan Francisco Nieves, as trustee of the Gonzalez Coronado Trust, v. Performance Sports Group Ltd., et al., No. 16-3591, S.D. N.Y.).
NEW HAVEN, Conn. - A federal judge in Connecticut on June 7 overruled a reinsurer's objections to a magistrate judge's decision that the reinsurer is required to post prepleading security in a $1 million reinsurance billing dispute (Select Insurance Company v. Excalibur Reinsurance Corporation, f/k/a PMA Capital Insurance Company, No. 15-cv-00715, D. Conn.).
SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on June 6 held that an insured failed to demonstrate that securities violations claims against it fell under a directors, officers and corporate liability insurance policy's exception to the "insured v. insured" exclusion, affirming a lower federal court's dismissal of the insured's breach of contract and bad faith lawsuit against its insurer (AMERCO v. National Union Fire Insurance Company of Pittsburgh PA, No. 14-16041, 9th Cir.; 2016 U.S. App. LEXIS 10209).
SAN FRANCISCO - A federal judge in California on June 1 appointed a shareholder as lead plaintiff in a securities class action, ruling that no evidence was provided showing that the shareholder fails to meet all statutory requirements for serving in the role (William Monachelli v. Hortonworks Inc., et al., No. 16-0980, N.D. Calif.; 2016 U.S. Dist. LEXIS 71575).
NEW YORK - Defendants in a securities class action lawsuit have agreed to pay $140 million to settle claims that they misrepresented a company's compliance with environmental regulations for a South American mine project in violation of federal securities laws, according to documents filed in New York federal court on May 31 (In re Barrick Gold Securities Litigation, No. 13-3851, S.D. N.Y.).
ST. PAUL, Minn. - The Eighth Circuit U.S. Court of Appeals on June 1 denied a petition for rehearing filed by shareholders in a securities class action lawsuit in which an Eighth Circuit panel reversed and remanded a federal district court's class certification ruling (IBEW Local 98 Pension Fund, et al. v. Best Buy Co., Inc., et al., No. 14-3178, 8th Cir.).
WASHINGTON, D.C. - Eight financial institutions will pay a combined $190 million to settle claims that they issued misrepresentations concealing the true investment quality of Countrywide Financial Corp. residential mortgage-backed securities (RMBSs) in violation of state and federal securities laws, according to a press release issued on June 2 by the Federal Deposit Insurance Corp. (FDIC).
SAN JOSE, Calif. - In a May 27 ruling, U.S. Judge Lucy Koh of the Northern District of California dismissed some of the claims against Anthem Inc. and Blue Cross Blue Shield Association (BCBS) in a class action related to a 2015 data breach, granting in part the insurers' motions and disposing of some claims without leave to amend (In Re: Anthem Inc., Customer Data Security Breach Litigation, No. 5:15-md-02617, N.D. Calif.; 2016 U.S. Dist. LEXIS 70594).
WASHINGTON, D.C. - The U.S. Supreme Court on May 31 denied review of a default judgment against the Arab Republic of Egypt under the Employee Retirement Income Security Act for denial of medical benefits (Embassy of the Arab Republic of Egypt, et al. v. Mohamed E. Lasheen, No. 15-1179, U.S. Sup.).
HARRISBURG, Pa. - Although the Pennsylvania Superior Court on May 24 disagreed with a lower court's ruling that a criminal acts policy exclusion bars coverage for an underlying suit alleging that an insured was negligent in failing to ensure the safety of its tanning customers and in failing to secure the premises from a third party's misconduct, it determined that the underlying claims for negligent operation of a business fail to trigger coverage on their own (Penn-America Insurance Co. v. Toni Tomei, et al., No. 480 WDA 2015, Pa. Super.; 2016 Pa. Super. Unpub. LEXIS 1859).