LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - Stockholders Sue Financial Company's Directors For Breach Of Fiduciary Duty

WILMINGTON, Del. - Stockholders in a May 21 complaint filed in a Delaware court accuse the directors of a financial company operating in the insurance and reinsurance business of breaching their fiduciary duty by transferring the value of stocks to their benefit (Icahn Partners LP, et al. v. Barry D...

Mealey's Securities/D&O Liability - Judge: Investor's Amended Complaint Failed To Cure Pleading Deficiencies

NEW YORK - The lead plaintiff in a shareholder class action against pharmacy benefits manager (PBM) Express Scripts Holding Co. and certain of its executives failed to cure pleading deficiencies in its second amended complaint after its federal securities law claims had previously been dismissed for...

Mealey's Securities/D&O Liability - Insured's Conclusory Bad Faith Allegations Lead To Summary Judgment Ruling

PHILADELPHIA - A federal judge in Pennsylvania on May 23 granted partial summary judgment on an insurance bad faith claim in an underinsured motorist dispute, ruling that an insured pleaded only conclusory allegations in stating the claim (Marc Williams v. Liberty Mutual Insurance, No. 17-3862, E.D....

Mealey's Securities/D&O Liability - Lack Of Material Misstatements Leads To Dismissal Of Securities Suit

NEW YORK - A New York federal judge on June 4 ruled that lead plaintiffs in a securities class action lawsuit against a biopharmaceutical company and certain of its executive officers failed to plead that the defendants issued any material misrepresentations or omissions in promoting the efficacy of...

Mealey's Securities/D&O Liability - Insider Trading Conviction Withstands Habeas Corpus Challenge

NEW YORK - Convicted hedge fund manager Raj Rajaratnam failed to properly raise an argument in support of a challenge of his convictions for insider trading based on Second Circuit precedent on direct appeal and is, thus, "procedurally barred from doing so on a collateral challenge" on a habeas...

Mealey's Securities/D&O Liability - Panel Affirms Denial Of Appeal Of Securities Fraud Conviction Ruling

DENVER - A man convicted of securities fraud and money laundering for his role in a securities fraud scheme was not improperly denied a certificate of appealability (COA) after a federal district court denied his motion to vacate or set aside its verdict against him because reasonable jurists would not...

Mealey's Securities/D&O Liability - Investor Found To Have Failed To Plead Securities Claims With Particularity

OAKLAND, Calif. - A federal judge in California on June 4 ruled that the lead plaintiff in a securities class action failed to plead any material misrepresentations or omissions or scienter in arguing that a clinical stage biopharmaceutical company and certain of its senior executives concealed from...

Mealey's Securities/D&O Liability - Panel: Shareholder's Failure To Respond To Issuance Letter Constituted Consent

CHICAGO - A failure by defendants to include the terms of an issuance of a company's stock in a letter to shareholders did not constitute a violation of federal securities law, and a shareholder's failure to respond to the letter under the terms of a Class A Stock Restriction Agreement (SRA)...

Mealey's Securities/D&O Liability - High Court Limits American Pipe Tolling For Class Actions

WASHINGTON, D.C. - Putative class members may not file a new class action lawsuit outside the applicable statute of limitations in lieu of joining an existing class action lawsuit or filing an individual action, the U.S. Supreme Court ruled on June 11, overturning a federal circuit court's determination...

Mealey's Securities/D&O Liability - Judge: Company Did Not Mislead Investors About Internet Licensing Compliance

NEWARK, N.J. - In a June 7 unpublished opinion, a federal judge in New Jersey dismissed a third amended securities class action complaint, ruling that a lead plaintiff failed to show that a Chinese social media company and certain of its current and former senior executives issued any misrepresentations...

Mealey's Securities/D&O Liability - Investor's State Law Claims Not Subject To SLUSA Preclusion, Panel Rules

ATLANTA - An 11th Circuit U.S. Court of Appeals panel on June 8 reversed and remanded an appeal in a securities class action lawsuit, ruling that a federal district court erred in determining that an investor's state law breach of contract and negligence claims were precluded under Title I of the...

Mealey's Securities/D&O Liability - Securities Fraud Claims Survive Attempts At Dismissal In Class Action

LOS ANGELES - In a June 7 order, a federal judge in California denied motions to dismiss in a securities class action lawsuit against social media company Snap Inc., certain of its senior executives and directors and underwriters of the company's initial public offering (IPO), ruling that shareholders...

Mealey's Securities/D&O Liability - Intuitive Surgical Settles Da Vinci Securities Class Action For $42.5M

SAN JOSE, Calif. - Intuitive Surgical Inc. on June 13 announced that it reached an agreement in principle to settle a securities class action for $42.5 million (In Re: Intuitive Surgical Securities Litigation, No. 13-1920, N.D. Calif.).

Mealey's Securities/D&O Liability - New York High Court: Martin Act Claims Subject To 3-Year Limitations Period

ALBANY, N.Y. - In a 4-1 ruling, a divided New York Court of Appeals on June 12 ruled that claims brought pursuant to the Martin Act are governed by a three-year statute of limitations under New York law (The People v. Credit Suisse (USA) LLC, et al., No. 40, N.Y. App., 2018 N.Y. LEXIS 1451).

Mealey's Securities/D&O Liability - Dismissal Of Derivative Suit For Failure To Plead Demand Futility Upheld

SAN FRANCISCO - Shareholders in a derivative lawsuit against certain officers and directors of a solar panel manufacturer failed to plead demand futility, and a federal district court did not err in dismissing their complaint as a result, a Ninth Circuit U.S. Court of Appeals panel ruled June 13 (Clifford...

Mealey's Securities/D&O Liability - Judge: Falsity, Materiality Elements Of Securities Law Claims Properly Pleaded

NEW YORK - A federal judge in New York on June 12 ruled that a lead plaintiff in a securities class action lawsuit properly pleaded falsity and materiality in arguing that a drug maker and certain of its current and former executive officers concealed from investors that the company had overstated its...

Mealey's Securities/D&O Liability - Utah High Court Overturns Securities Fraud Statute Of Limitations Ruling

SALT LAKE CITY - Utah's Pattern of Unlawful Activity Act allows the state to establish a pattern of unlawful conduct on crimes that fall outside the statute of limitations, the Utah Supreme Court ruled June 12 in reversing and remanding a state trial court's ruling (Utah v. Scott R. Stewart,...

Mealey's Securities/D&O Liability - Biosciences Company Hit With Stock-Drop Suit Over Internal Controls Reporting

NEWARK, N.J. - An investor sued a biosciences company and certain of its senior officers and directors in New Jersey federal court on June 13, alleging that the defendants concealed certain weaknesses in the company's internal controls, allowing it to improperly recognize revenue in violation of...

Mealey's Securities/D&O Liability - Investor Sues To Halt Merger Deal Vote Until Company Provides Needed Information

SAN FRANCISCO - A shareholder on June 13 sued an investment adviser and its board of directors in California federal court, seeking to halt the company's proposed merger deal with a financial planning firm until information necessary for shareholders to vote on the proposed deal is disclosed (Jerry...

Mealey's Securities/D&O Liability - U.S. Supreme Court To Hear Appeal Of SEC Fraudulent Scheme Claim Ruling

WASHINGTON, D.C. - The U.S. Supreme Court on June 18 agreed to hear an appeal of an SEC ruling that an investment banker's two emails sent to prospective investors violated provisions of federal securities laws because there is no split among the federal circuit courts as to the "scope of liability...

Mealey's Securities/D&O Liability - Deutsche Bank To Pay $205M Fine To Settle FX Manipulation Claims

NEW YORK - Deutsche Bank AG and its foreign exchange (FX) business on June 20 agreed to pay $205 million to settle claims with the New York Department of Financial Services (DFS) stemming from the DFS's investigation into the global bank's operation of its foreign exchange business.

Mealey's Securities/D&O Liability - Panel: Investors Properly Alleged Domestic Transaction Of Securities Occurred

NEW YORK - A federal judge erred in dismissing a securities fraud lawsuit because investors properly alleged a "domestic transaction" under Section 10(b) of the Securities Exchange Act of 1934, a Second Circuit U.S. Court of Appeals panel ruled June 19 in reversing and remanding the action...

Mealey's Securities/D&O Liability - Securities Claims Trimmed In Investor Suit Against Tech Company, Others

BOSTON - A federal judge in Massachusetts on June 15 substantially dismissed a shareholder class action lawsuit, ruling that lead plaintiffs failed to cure a number of pleading deficiencies noted by the judge during oral arguments on several motions to dismiss filed by the defendants in the action (Steven...

Mealey's Securities/D&O Liability - High Court Finds That SEC Judges Are Officers Under Appointments Clause

WASHINGTON, D.C. - In a divided opinion, the U.S. Supreme Court on June 21 ruled that Securities and Exchange Commission administrative law judges (ALJs) are "Officers of the United States" and are subject to the appointments clause of the U.S. Constitution (Raymond J. Lucia, et al. v. Securities...

Mealey's Securities/D&O Liability - 9th Circuit Panel Affirms Denial Of SEC Whistleblower Award Application

SAN FRANCISCO - The Securities and Exchange Commission properly determined that a whistleblower is not entitled to a whistleblower award under the Securities Exchange Act of 1934 because the information he provided to the SEC did not provide any information that led to the successful enforcement of a...