LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - Summary Judgment Ruling In Short-Swing Profit Suit Was Erroneous, Investor Says

NEW YORK - A federal district court erred in granting summary judgment to defendants in a shareholder derivative lawsuit against hedge funds and a hedge fund manager because the defendants did not meet the statutory guidelines necessary to avoid disgorgement of certain short-swing profits they obtained...

Mealey's Securities/D&O Liability - High Court Sets Argument Time In Appeal Of Securities Class Action Ruling

WASHINGTON, D.C. - The U.S. Supreme Court on Nov. 6 issued an order granting in part a motion filed by U.S. Solicitor General Noel J. Francisco to participate in oral arguments as amicus curiae in an appeal of a California Superior Court ruling that shareholders in a securities class action are not preempted...

Mealey's Securities/D&O Liability - Solicitor General To Take Part In Oral Arguments In Dodd-Frank Suit

WASHINGTON, D.C. - The U.S. Supreme Court on Nov. 6 granted a motion by U.S. Solicitor General Noel C. Francisco to argue pro hac vice and for leave to participate in oral arguments as amicus curiae and for divided argument in an appeal of a Ninth Circuit U.S. Court of Appeals' ruling that a federal...

Mealey's Securities/D&O Liability - Shareholder's Failure To Plead Scienter Leads To Dismissal Of Securities Claims

BOSTON - A shareholder has failed to plead scienter in making her federal securities law claims against a clinical laboratory services provider and its CEO for their alleged role in concealing an illegal monopoly scheme with the provider's Brazilian affiliate, a federal judge in Massachusetts ruled...

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

COVINGTON, Ky. - A federal judge in Kentucky on Nov. 7 appointed a shareholder as lead plaintiff in a securities class action lawsuit against a manufacturer and distributor of fiber optic wire and cable products and certain of its executive officers, ruling that although it did not have the largest financial...

Mealey's Securities/D&O Liability - Judge Appoints Investor Group As Lead Plaintiff In Stock-Drop Lawsuit

SAN DIEGO - A federal judge in California on Nov. 7 appointed an investor group to serve as lead plaintiff in a securities class action lawsuit against a consumer and business banking provider and certain of its executive officers because the investor group meets all statutory requirements to serve as...

Mealey's Securities/D&O Liability - Judge: Investors Pleaded Scienter In Making Federal Securities Law Claims

NEW YORK - Shareholders in a securities class action lawsuit against car maker Fiat Chrysler Automobiles N.V. (Chrysler), certain of its executive officers and others have properly pleaded scienter and falsity in making their federal securities law claims by showing that the defendants concealed certain...

Mealey's Securities/D&O Liability - Shareholders Seek To Halt Proposed Vote On Ruby Tuesday Acquisition Deal

KNOXVILLE, Tenn. - Ruby Tuesday Inc. shareholders filed three related securities class action lawsuits in Tennessee federal court between Nov. 13 and Nov. 14, seeking to halt a proposed merger deal in which Ruby Tuesday would be acquired, arguing that the company, its CEO and board of directors and others...

Mealey's Securities/D&O Liability - IT Specialist Can Opine On Falsity Of Investor Statements, Judge Says

SHERMAN, Texas - An information technology specialist can testify about whether statements made to investors by the CEO of a computer server development company were false, but cannot opine on whether the statements were misleading, a Texas federal judge ruled Nov. 14 (Securities and Exchange Commission...

Mealey's Securities/D&O Liability - 4th Circuit Affirms Dismissal Of Securities Suit For Failure To Plead Scienter

RICHMOND, Va. - Shareholders in a securities class action lawsuit against an energy provider and its CEO have failed to show that the CEO acted with the requisite scienter in misrepresenting to investors that the company had secured a contract renewal with a large customer because they have not shown...

Mealey's Securities/D&O Liability - Rehearing Sought Of 2nd Circuit Ruling In Barclays Securities Lawsuit

NEW YORK - Rehearing of a Second Circuit U.S. Court of Appeals panel's ruling affirming a federal district court's grant of class certification in a securities lawsuit is necessary because the panel's ruling is in conflict with U.S. Supreme Court and federal circuit court precedent, defendants...

Mealey's Securities/D&O Liability - Drug Company To Pay $24M To Settle Claims In Securities Class Action Suit

CHICAGO - Pharmaceutical company Akorn Inc. has agreed to pay $24 million to settle claims that it and certain of its current and former executive officers misrepresented the company's financial results in violation of federal securities laws, according to a motion for preliminary approval of settlement...

Mealey's Securities/D&O Liability - District Court's Dismissal Of Securities Suit Not Erroneous, Panel Rules

SAN FRANCISCO - A federal district court did not err in dismissing a securities class action lawsuit against crowd-sourced review platform Yelp Inc. and certain of its executive officers because the lead plaintiff in the action failed to show that the disclosure of consumer complaints, without more,...

Mealey's Securities/D&O Liability - U.S. Supreme Court Hears Oral Arguments In SLUSA Preemption Appeal

WASHINGTON, D.C. - In writing the Securities Litigation Uniform Standards Act (SLUSA), Congress intended to eliminate concurrent jurisdiction for many federal claims arising from the Securities Act of 1933, even if it took an "obtuse" approach to saying as much, counsel for Cyan Inc. told the...

Mealey's Securities/D&O Liability - 9th Circuit Panel Affirms HP Shareholder Derivative Action Settlement Approval

SAN FRANCISCO - A federal judge did not abuse his discretion in approving the terms of a third proposed settlement in a shareholder derivative lawsuit stemming from Hewlett-Packard Co.'s (HP) acquisition of a British software company because the settlement, among other things, caused HP to enact...

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...