SAN FRANCISCO - The lead plaintiff in a securities class action lawsuit against a tech company and certain of its current and former executive officers failed to plead any of the required elements of falsity as required pursuant to the U.S. Supreme Court's ruling in Omnicare Inc., et al. v. The Laborers District Council Construction Industry Pension Fund and The Cement Masons Local 526 Combined Funds, a Ninth Circuit U.S. Court of Appeals panel ruled May 5 in affirming a lower court's dismissal ruling (City of Dearborn Heights Act 345 Police & Fire Retirement System v. Align Technology Inc., et al., No. 14-16814, 9th Cir., 2017 U.S. App. LEXIS 8005).
NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on May 9 remanded a lower federal court's certification order as to contract and statutory claims and reversed the certification order as to the fraud claim in a class action lawsuit challenging an insurer's practices in determining the value of totaled vehicles (Cheryl Slade v. Progressive Security Insurance Co., No. 15-30010, 5th Cir., 2017 U.S. App. LEXIS 8229).
PHOENIX - Applying the five-factor test set forth in Hummell v. S.E. Rykoff & Co., an Arizona federal judge on May 8 awarded $25,000 and interest for attorney fees and costs to a defined benefit retirement plan, less than 95 percent of what the plan was seeking, saying the plaintiff's claims under the Employee Retirement Income Security Act lacked merit (Maureen Terri Angichiodo v. Honeywell Pension and Savings Plan, et al., No. 15-00097, D. Ariz., 2017 U.S. Dist. LEXIS 69793).
TYLER, Texas - Shareholders and defendants in a securities class action lawsuit against retailer JCPenney Co. Inc. and certain of its executive officers have provisionally agreed to a $97.5 million settlement on claims that the defendants misrepresented the company's business and financial condition in violation of federal securities laws, according to a joint motion to stay all deadlines and notice of settlement filed May 5 in a Texas federal court (Alan B. Marcus v. JCPenney Company Inc., et al., No. 13-0736, E.D. Texas).
CHICAGO - After allowing a trucking industry expert's opinions on the custom and practice in the shipping industry regarding securing loads in trailers, an Illinois federal judge on May 5 awarded a shipping company summary judgment on a truck driver's claims that the company was responsible for injuries he suffered when an unsecured load of pallets fell on him (Jerzy Kucharski, et al. v. Orbis Corporation, No. 14-cv-05574, N.D. Ill., 2017 U.S. Dist. LEXIS 68611).
COLUMBUS, Ohio - A federal magistrate judge in Ohio on May 4 recommended that a motion to stay dissemination of class notice in a securities class action lawsuit against broad line closeout retailer Big Lots Inc. and certain of its executive officers be partially granted, ruling that class representative should prepare the notice but withhold distributing it until a federal circuit court has had a chance to resolve a petition for permissive leave to appeal (Alan Willis v. Big Lots Inc., et al., No. 12-0604, S.D. Ohio, 2017 U.S. Dist. LEXIS 68233).
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.).
LYNCHURG, Va. - A Virginia federal judge on May 2 denied a motion to dismiss a lawyer defendant in a case alleging that the defendants facilitated the purchase of company stock by an employee stock ownership and savings plan (ESOP) at an inflated price in violation of the Employee Retirement Income Security Act, saying that the attorney exercised discretionary authority or control over the management of the ESOP and, therefore, was a de facto fiduciary (Edward C. Hugler v. Adam Vinoskey, et al., No. 6:16-cv-00062, W.D. Va., 2017 U.S. Dist. LEXIS 67030).
DENVER - A majority of the 10th Circuit U.S. Court of Appeals on May 3 denied the Securities and Exchange Commission's petition for rehearing and rehearing en banc, rejecting the commission's argument that a 10th Circuit panel erred in holding that the SEC's administrative law judges (ALJs) are inferior officers and subject to appointment pursuant to the appointments clause of the U.S. Constitution (David F. Bandimere v. Securities and Exchange Commission, No. 15-9586, 10th Cir.).
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).