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Mealey's Securities/D&O Liability - Ruling In Securities Suit Conflicts With Supreme Court Precedent, Investor Says

RICHMOND, Va. - The lead plaintiff in a securities class action lawsuit against an energy provider and its CEO asked the Fourth Circuit U.S. Court of Appeals on Nov. 29 to rehear its appeal of a federal district court's dismissal of its amended complaint for failure to plead scienter, claiming that...

Mealey's Securities/D&O Liability - Government Changes Course, Asks High Court To Review SEC ALJ Appointment Dispute

WASHINGTON, D.C. - In a change of course, the U.S. government in a Nov. 29 respondent's brief asked the U.S. Supreme Court to review an appeal of a District of Columbia Circuit U.S. Court ruling that Securities and Exchange Commission administrative law judges (ALJs) are constitutional officers pursuant...

Mealey's Securities/D&O Liability - Federal Prosecutors Seek $7.3M Forfeiture From Shkreli In Criminal Action

BROOKLYN, N.Y. - Federal prosecutors in the criminal proceedings against convicted former pharmaceutical company CEO and hedge fund manager Martin Shkreli on Nov. 30 asked a federal judge to require him to forfeit more than $7.3 million he obtained as part of his role in the securities fraud scheme to...

Mealey's Securities/D&O Liability - 9th Circuit Panel Hears Oral Argument In Accounting Misrepresentation Lawsuit

SAN FRANCISCO - Parties in a securities class action lawsuit against a company that sells renewable energy and certain of its executive officers asked a Ninth Circuit U.S. Court of Appeals panel on Dec. 4 to determine whether a federal district court erred in dismissing the action for failure to plead...

Mealey's Securities/D&O Liability - Majority Of Claims In Securities Fraud Suit Are Time-Barred, Judge Rules

WEST PALM BEACH, Fla. - Dismissal of a majority of claims in a securities fraud lawsuit against Children of America (COA), certain of its affiliates and others is warranted because those claims are time-barred under their respective statutes of limitations, a federal judge in Florida ruled Dec. 1 in...

Mealey's Securities/D&O Liability - Panel: Shareholders Properly Pleaded Scienter In Securities Class Action

NEW YORK - A federal district court erred in dismissing a securities class action lawsuit against a China-based online and mobile commerce company and certain of its senior officers because shareholders had properly pleaded that the defendants acted with the requisite scienter by concealing that the...

Mealey's Securities/D&O Liability - Defendants In Stock-Drop Suit Seek Dismissal Of Federal Securities Law Claims

HOUSTON - Defendants in a securities class action lawsuit against a worldwide provider of professional services and technologies within the government services and hydrocarbons industries on Dec. 4 asked a federal judge in Texas to dismiss federal securities law claims because shareholders failed to...

Mealey's Securities/D&O Liability - Pension Fund Found To Have Failed To Plead Falsity, Scienter In Securities Suit

CHICAGO - Dismissal of a securities class action lawsuit against a for-profit college and certain of its current and former senior executives is warranted because the lead plaintiff in the action failed to plead falsity or scienter in making its federal securities law claims against the defendants, a...

Mealey's Securities/D&O Liability - Supreme Court Will Review Application Of American Pipe Tolling Doctrine In Securities Suit

WASHINGTON, D.C. - The U.S. Supreme Court on Dec. 8 announced that it will determine whether the Ninth Circuit U.S. Court of Appeals properly ruled that American Pipe & Construction Co. v. Utah tolls the statute of limitations to permit a previously absent class member to bring a subsequent class...

Mealey's Securities/D&O Liability - Investor Group Named Lead Plaintiff In Drug Company's Stock Drop Suit

SAN FRANCISCO - An investor group is the most appropriate candidate for lead plaintiff because it has the largest financial stake in the litigation and meets all other statutory requirements to serve in the role, a federal judge in California ruled Dec. 8 in appointing the investor group as lead plaintiff...

Mealey's Securities/D&O Liability - 6th Circuit Panel Rules That District Court Erred In Loss Causation Analysis

CINCINNATI - A federal district court erred in dismissing a shareholder class action against the operator of the country's largest for-profit hospital system and certain of its executive officers for failure to plead loss causation because lead plaintiffs have shown that the filing of a complaint...

Mealey's Securities/D&O Liability - Investors Found To Have Properly Pleaded Scienter In Fiat Stock Securities Suit

FLINT, Mich. - Automobile manufacturer Fiat Chrysler Automobiles N.V. (FCA) and certain of its executive officers have failed to show that lead plaintiffs in a securities class action lawsuit have not properly pleaded materiality or scienter in claiming that the defendants misrepresented the company's...

Mealey's Securities/D&O Liability - 2 Arizona Men Settle SEC Insider Trading Claims For $370K

PHOENIX - Two men have agreed to pay nearly $370,000 to settle claims that they engaged in insider trading scheme in violation of federal securities laws, according to a stipulation of settlement filed in Arizona federal court on Dec. 14 (Securities and Exchange Commission v. Lanny Brown, et al., No...

Mealey's Securities/D&O Liability - $290M Settlement Reached In Related Valeant Insider Trading Suits

SANTA ANA, Calif. - Defendants in a pair of related securities class action lawsuits alleging an insider-trading and front-running scheme regarding pharmaceutical company Valeant Pharmaceuticals International Inc.'s attempt at a hostile takeover of Allergan Inc. will pay $290 million to settle the...

Mealey's Securities/D&O Liability - Petrobras Agrees To Pay $2.95B To Settle Securities Class Action Claims

NEW YORK - Brazilian oil company Petroleo Brasileiro S.A. (Petrobras) will pay $2.95 billion to settle claims that it concealed from investors its involvement in an illegal bribery and kickback scheme in violation of federal securities laws, according to a press release issued by the company on Jan....

Mealey's Securities/D&O Liability - High Court Strikes Supplemental Brief In SLUSA Preemption Suit

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 8 granted a communications networks hardware and software supplier's motion to strike shareholders' supplemental brief challenging a California Superior Court ruling that the shareholders in a securities class action are not preempted by the Securities...

Mealey's Securities/D&O Liability - 2nd Circuit Will Not Reconsider Ruling In Dark Pool Securities Class Appeal

NEW YORK - The Second Circuit U.S. Court of Appeals on Jan. 5 said it will not reconsider its Nov. 6 ruling that a federal judge did not err in granting a motion for class certification filed by shareholders in a securities class action lawsuit even though the judge erred in applying the U.S. Supreme...

Mealey's Securities/D&O Liability - Panel: Court Did Not Err In Ruling That Claims Were Preempted By SLUSA

ST. LOUIS - A federal district court did not err in dismissing an investor's class action lawsuit against a securities brokerage for allegedly violating the terms of its "duty of best execution" because the investor's claims were preempted by the Securities Litigation Uniform Standards...

Mealey's Securities/D&O Liability - SEC Halts Trading Of Chinese-Based Cryptocurrency Shares

WASHINGTON, D.C. - For the second time in two months, the Securities and Exchange Commission on Jan. 5 issued an order of suspension of trading to a cryptocurrency trading company over concerns about the company's business operations and market activity (In The Matter Of UBI Blockchain Internet Ltd...

Mealey's Securities/D&O Liability - U.S. Supreme Court To Weigh In On Constitutionality Of SEC Judges

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 12 agreed to hear an appeal of a District of Columbia Circuit U.S. Court of Appeals ruling that Securities and Exchange Commission administrative law judges (ALJs) are constitutional officers pursuant to the appointments clause of the U.S. Constitution...

Mealey's Securities/D&O Liability - Investor Failed To Plead Misstatements, Scienter In Securities Suit, Judge Rules

NEW YORK - A lead plaintiff in a securities class action lawsuit against an energy company and certain of its current and former executive officers failed to plead any material misrepresentation or omissions or scienter to support his federal securities law claim that the defendants concealed that the...

Mealey's Securities/D&O Liability - High Court Defers Ruling On Securities Class Action Petition After Settlement

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 16 granted a joint emergency motion to defer consideration of a petition for a writ of certiorari in an appeal of a securities class action lawsuit that asks it to provide guidance to lower courts as to the evidence that is necessary under Supreme Court...

Mealey's Securities/D&O Liability - Parties Agree To $110M Accounting Fraud Class Action Settlement

NEW YORK - A data and metrics provider for the media, advertising and marketing industries will pay $110 million to settle claims that it and certain of its current and former officers and directors violated federal securities law by engaging in a massive accounting fraud, lead plaintiffs claim in a...

Mealey's Securities/D&O Liability - Securities Suit Remanded For Proper Application Of Basic Reliance Standard

NEW YORK - It is unclear whether a federal district court properly applied the correct standard in determining that defendants in a securities class action lawsuit failed to properly rebut the presumption of reliance by a preponderance of the evidence as required pursuant to the U.S. Supreme Court's...

Mealey's Securities/D&O Liability - Earnings Call Statements Not Protected By Safe Harbor Provision, Judge Rules

NEWARK, N.J. - Statements made by defendants in a securities class action lawsuit against a pet food company and certain of its executive officers in 2015 investor earnings calls were not forward-looking or protected by the safe harbor provision of the Private Securities Litigation Reform Act (PSLRA...