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).
NEW YORK - Dismissal of claims against an independent auditor in a securities class action lawsuit is proper, a federal judge in New York ruled May 24, because the lead plaintiff in the action failed to plead a material misrepresentation, falsity or scienter in making his federal securities law claims (In re Poseidon Concepts Securities Litigation, No. 13-1213, S.D. N.Y.; 2016 U.S. Dist. LEXIS 68127).
NEW YORK - Dismissal of a securities class action lawsuit is proper because the lead plaintiff in the action failed to plead materiality or show that an online retailer had a duty to disclose that Overstock.com was a direct competitor in offering documents for the retailer's initial public offering (IPO) in making his federal securities law claims, a federal judge in New York ruled May 24 (Gerald Dingee, et al. v. Wayfair Inc., et al., No. 15-6941, S.D. N.Y.; 2016 U.S. Dist. LEXIS 68322).
NEW HAVEN, Conn. - A reinsurer told a federal court in Connecticut on May 24 that the court erred in its ruling interpreting Connecticut's prepleading security statute (Select Insurance Company v. Excalibur Reinsurance Corporation, f/k/a PMA Capital Insurance Company, No. 15-cv-00715, D. Conn.).
PHILADELPHIA - A Third Circuit U.S. Court of Appeals panel on May 25 affirmed the dismissal of all Employee Retirement Income Security Act claims brought by a fired electric and gas company employee (Gerard Piscopo v. Public Service Electric and Gas Company, et al., No. 15-2819, 3rd Cir.; 2016 U.S. App. LEXIS 9556).
NEW YORK - A federal appeals panel on May 23 affirmed a New York federal judge's dismissal of a class action against Citigroup Inc. brought under the Employee Retirement Income Security Act on the grounds that it is barred by the law's three-year statute of limitations (Steven Muehlgay, et al. v. Citigroup Inc., et al., No. 15-2461, 2nd Cir.; 2016 U.S. App. LEXIS 9349).
WASHINGTON, D.C. - The U.S. Supreme Court on May 23 directed the Fifth Circuit U.S. Court of Appeals to reconsider, in light of Spokeo, Inc. v. Robins (578 U.S. __ ), its ruling that a defined-benefit pension plan participant did not have standing to file a breach of fiduciary duty suit under the Employee Retirement Income Security Act (Edward Pundt v. Verizon Communications, Incorporated, et al., No. 15-785, U.S. Sup.).
PASADENA, Calif. - A Ninth Circuit U.S. Court of Appeals panel on May 20 affirmed in part and denied in part a California federal judge's summary judgment ruling in favor of defendants in a class action under the Employee Retirement Income Security Act (Geoffrey Moyle, et al. v. Liberty Mutual Retirement Benefits Plan, et al., No. 13-56330, 9th Cir.; 2016 U.S. App. LEXIS 9251).
NEW YORK - Transfer of a securities class action lawsuit to another federal district court is proper because shareholders' claims could have been brought in that court and because the relevant factors "overwhelmingly support transfer of this action to the District," a federal judge in New York ruled May 19 (William Ahrens, et al. v. CTI Biopharma Corp., et al., No. 16-1044, S.D. N.Y.; 2016 U.S. Dist. LEXIS 66139).
SAN FRANCISCO - Dismissal of an amended complaint in a securities class action lawsuit is proper because shareholders failed to properly plead loss causation in making their federal securities law claims against a biotechnology company and others, a federal judge in California ruled May 20 (Francis J. Bonanno v. Cellular Biomedicine Group Inc., et al., No. 15-1795, N.D. Calif.; 2016 U.S. Dist. LEXIS 66841).