KANSAS CITY, Kan. - Credit Suisse Securities (USA) LLC will pay $400 million to settle claims with the National Credit Union Administration (NCUA) that is mispresented the investment quality of residential mortgage-backed securities (MBS) it underwrote and sold to three failed credit unions, according to an NCUA press release issued May 3 (National Credit Union Administration Board v. Credit Suisse Securities [USA] LLC, et al., No. 12-2648, D. Kan.).
SAN JOSE, Calif. - A shareholder has shown that defendants in a securities class action lawsuit acted with deliberate recklessness in misrepresenting a company's business and financial condition in violation of federal securities laws, a federal judge in California ruled May 1 in denying the defendants' motion to dismiss (In re Finisar Corp. Securities Litigation, No. 11-1252, N.D. Calif., 2017 U.S. Dist. LEXIS 66229).
ALEXANDRIA, Va. - UBS Securities LLC will pay $445 million to the National Credit Union Administration (NCUA) to settle claims that UBS sold residential mortgage-backed securities (MBS) to two failed credit unions in violation of federal securities laws, according to an NCUA press release issued May 1 (National Credit Union Administration Board v. UBS Securities LLC, No. 12-2591, D. Kan.).
SAN FRANCISCO - The lead plaintiff in a securities class action lawsuit against GoPro Inc. and certain of its current and former executive officers failed to plead any material misrepresentations or omissions or scienter in making his federal securities laws claims, a federal judge in California ruled May 1 in granting the defendants' motion to dismiss (Joseph Bodri v. GoPro Inc., et al., No. 16-0232, N.D. Calif.).
PHILADELPHIA - On April 27, a Pennsylvania federal judge presiding over a suit brought by a nationwide class of former sales agents accusing Allstate Insurance Co. and its president of age discrimination and violating the Employee Retirement Income Security Act ruled that Allstate did not violate ERISA's anti-cutback rules when it eliminated an early retirement subsidy known as the "beef-up" because it had offered plan participants the greater of two alternatives with a baseline of their beef-up subsidy as of the time of the amendment (Gene R. Romero, et al. v. Allstate Insurance Company, et al., No. 01-3894, consolidated with No. 01-6764, 03-6872, 15-1017, 15-1049. 15-1190, 15-2602, 15-2961, 15-3047, E.D. Pa., 2017 U.S. Dist. LEXIS 64150).
NEW YORK - A Brazilian intermediary of securities and derivatives for investment funds on April 28 filed a petition to confirm a Brazilian arbitral award in the amount of $3,588,347 that was issued in its favor in relation to another entity's breach of its obligations to make a bonus payment under a service agreement (TBC Consultoria em Investimentos Financeiros Ltda. v. Gradual Corretora de Cambio, Titulos e Valores Mobiliarios S.A., et al., No. 17-cv-3145, S.D. N.Y.).
HARRISBURG, Pa. - Efforts by a defendant to secure reconsideration of a March order that adopted a Pennsylvania federal magistrate judge's recommendation to deny summary judgment on a copyright infringement claim were unsuccessful on May 1 (Crestwood Membranes Inc. d/b/a i2M v. Constant Services Inc., No. 15-537, M.D. Pa., 2017 U.S. Dist. LEXIS 66105).
TYLER, Texas - A shareholder filed a securities class action lawsuit on April 27 in Texas federal court, alleging that an operator of a network of free-standing emergency rooms and certain of its current and former executive officers and directors misrepresented the company's business condition in violation of federal securities laws (Sascha Troll v. Adeptus Health Inc., No. 17-0241, E.D. Texas).
SAN DIEGO - Defendants in a securities class action lawsuit against a drug company and certain of its current and former executive officers have failed to show that the lead plaintiff failed to plead any material misrepresentations or omissions in arguing that the defendants concealed adverse clinical test results for its development of a diet drug in violation of federal securities laws, a federal judge in California ruled April 28 in denying the defendants' motion to dismiss (Todd Schueneman, et al. v. Arena Pharmaceuticals Inc., et al., No. 10-1959, S.D. Calif., 2017 U.S. Dist. LEXIS 65275).
NEW YORK - In an unpublished decision, a Second Circuit U.S. Court of Appeals panel held April 25 that a Connecticut federal judge properly dismissed a putative class action filed by Family Dollar Stores Inc. employees under the Employee Retirement Income Security Act for failure to state a claim upon which relief may be granted, saying that the plaintiffs failed to show that the insurance company that issued group life insurance to them was a fiduciary under ERISA (Patrick Hannan, et al. v. Hartford Financial Services Inc., et al., No. 16-1316, 2nd Cir.).
ST. LOUIS - Recent Missouri Supreme Court precedent finding that registration in the state does not constitute consent to jurisdiction warrants reconsideration of an earlier ruling in an asbestos case and granting the company's motion to dismiss, a federal judge in Missouri said April 21 (Diane MacCormack, Nancy Broudy, and Karen Loftus, as personal representatives of Berj Hovsepian v. The Adel Wiggins Group, et al., No. 16-414, E.D. Mo., 2017 U.S. Dist. LEXIS 60898).
PROVIDENCE, R.I. - A Rhode Island federal judge on April 18 adopted a report by a magistrate judge who recommended dismissal of an amended complaint arising under the Employee Retirement Income Security Act alleging that CVS Health Corp., its employee benefits plan committee and the manager of one of the plan's investment options breached their fiduciary duties because new material in the complaint is insufficient to permit an inference of imprudence and dismissed the complaint with prejudice (Mary Barchock, et al. v. CVS Health Corp., et al., No. 1:16-cv-00061, D. R.I., 2017 U.S. Dist. LEXIS 59083).
WASHINGTON, D.C. - Audio products and electronic systems manufacturer Harman International Industries Inc. will pay more than $28 million to settle claims that it and certain of its current and former executive officers concealed issues with the company's line of personal navigation devices (PND) in violation of federal securities laws, according to a motion for preliminary approval of settlement filed April 19 in the District of Columbia federal court (In re Harman International Industries Inc. Securities Litigation, No. 07-1757, D. D.C.).
NEW YORK - A New York justice on April 17 ruled against insurers in a lawsuit seeking indemnification from them for claims stemming from Bear Stearns' settlement of Securities and Exchange Commission and New York Stock Exchange (NYSE) regulatory proceedings and private litigation over claims that it facilitated customers' deceptive market timing and late trading activities (J.P. Morgan Securities, et al. v. Vigilant Insurance, et al., No. 600979/2009, N.Y. Sup., New York Co., 2017 N.Y. Misc. LEXIS 1381).
NEW YORK - A Second Circuit U.S. Court of Appeals panel on April 14 affirmed a New York federal judge's dismissal of a plaintiff's claims for pension and stock benefits on timeliness grounds, saying that his complaint was filed well outside of the six-year limitations period that applies to Employee Retirement Income Security Act claims (Benjamin Reches v. Morgan Stanley & Co. Inc., No 16-3294, 2nd Cir., 2017 U.S. App. LEXIS 6490).