LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - Shrkeli, Greebel Plead Not Guilty To Additional Claim In Ponzi Scheme Suit

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.).

Mealey's Litigation Procedure - Pension Fund Named Lead Plaintiff In Securities Class Action Lawsuit

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.).

Mealey's Insurance - Judge Orders Reinsurer To Post Prepleading Security

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.).

Mealey's Securities/D&O Liability - Pension Fund Named Lead Plaintiff In Securities Class Action Lawsuit

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.).

Mealey's Banking & Finance - Panel: No Directors, Officers Liability Coverage For Securities Holders' Claims

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).

Mealey's Insurance - Panel: No Directors, Officers Liability Coverage For Securities Holders' Claims

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).

Mealey's Securities/D&O Liability - Lead Plaintiff, Lead Counsel Appointed In Securities Class Action

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).

Mealey's Litigation Procedure - Investors Seek Preliminary Approval Of $140M Securities Class Action Settlement

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.).

Mealey's Litigation Procedure - 8th Circuit Won't Rehear Appeal In Securities Class Action Against Best Buy

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.).

Mealey's Banking & Finance - 8 Financial Institutions To Pay A Total Of $190M To Settle FDIC Claims

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).

Mealey's Labor & Employment - Anthem, Blue Cross See Some Claims Against Them Dismissed In Data Breach Suit

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).

Mealey's Litigation Procedure - Anthem, Blue Cross See Some Claims Against Them Dismissed In Data Breach Suit

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).

Mealey's Securities/D&O Liability - Investors Seek Preliminary Approval Of $140M Securities Class Action Settlement

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.).

Mealey's Securities/D&O Liability - 8th Circuit Won't Rehear Appeal In Securities Class Action Against Best Buy

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.).

Mealey's Securities/D&O Liability - 8 Financial Institutions To Pay A Total Of $190M To Settle FDIC Claims

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).

Mealey's Labor & Employment - High Court Lets Stand Default Judgment, Damages Award In Denial Of Benefits Suit

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.).

Mealey's IP/Tech - No Coverage For Negligence Claims Against Spa, Pennsylvania Superior Court Rules

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).

Mealey's Insurance - No Coverage For Negligence Claims Against Spa, Pennsylvania Superior Court Rules

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).

Mealey's Litigation Procedure - Judge: Investor Failed To Plead Elements Of Securities Law Claims

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).

Mealey's Litigation Procedure - Judge: Lead Plaintiff In Securities Class Action Failed To Plead Materiality

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).

Mealey's Insurance - Reinsurer Says Court Erred In Opinion That Reinsurer Must Post Security

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.).

Mealey's Labor & Employment - 3rd Circuit Panel Affirms Dismissal Of Fired Utility Worker's Claims

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).

Mealey's Securities/D&O Liability - Judge: Investor Failed To Plead Elements Of Securities Law Claims

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).

Mealey's Securities/D&O Liability - Judge: Lead Plaintiff In Securities Class Action Failed To Plead Materiality

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).

Mealey's Litigation Procedure - 2nd Circuit Panel Affirms Dismissal Of Citigroup Class Action

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).