LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - Judge Refuses To Dismiss Securities, UCL Claims Asserted By Club Investor

SAN DIEGO - After finding that the manager of a nightclub development company fraudulently induced an investor into investing money for the development of a new club, a California federal judge on Aug. 7 refused to dismiss the investor's claims for violation of California's unfair competition...

Mealey's Securities/D&O Liability - 9th Circuit Panel Partially Overturns Securities Class Action Ruling

SEATTLE - A federal district court partially erred in dismissing a shareholder class action lawsuit against a health care company and its CEO over their alleged misrepresentations made with regard to its breast cancer screening products because the lead plaintiff has shown that certain of the defendants'...

Mealey's Securities/D&O Liability - Investor Sues Pipe Maker, Others Over Financial Condition Misstatements

BROOKLYN, N.Y. - A manufacturer of water and drainage pipes and various precast products, and certain of its executive officers and directors issued misrepresentations in Securities and Exchange Commission documents for an initial public offering (IPO) regarding the company's business and financial...

Mealey's Securities/D&O Liability - Many Claims Survive Motion To Dismiss In Securities Suit Against Mining Company

NEW YORK - Shareholders in a securities class action lawsuit against a mining company and certain of its current and former executive officers and directors have shown that the defendants issued a number of actionable false and misleading statements and have properly pleaded corporate scienter on the...

Mealey's Securities/D&O Liability - Investor Awarded Over $33,000 In Fees, Expenses In Citigroup Securities Suit

NEW YORK - A shareholder in a securities class action lawsuit against Citigroup Inc. and others over their alleged issuance of misrepresentations regarding the financial institution's exposure to the subprime mortgage lending crisis has shown that he is entitled to $33,412.50 in attorney fees and...

Mealey's Securities/D&O Liability - Class Definition In Securities Suit Against Medical Tech Company Limited

SAN JOSE, Calif. - On the heels of his ruling from the bench to limit the class definition for a securities class action lawsuit against a medical technology developer and certain of its current and former executive officers, a federal magistrate judge on Sept. 6 issued a written ruling explaining his...

Mealey's Securities/D&O Liability - Drugmaker, Investors Reach $20M Settlement In Stock Drop Suit

SEATTLE - Pharmaceutical company CTI BioPharma Corp. will pay $20 million to settle claims that it, its CEO and members of its board of directors and underwriters of two of the company's public offering of stock in 2015 concealed certain adverse information, including patient deaths, in the clinical...

Mealey's Securities/D&O Liability - Judge: Pension Fund Pleaded Misrepresentation, Scienter In Securities Suit

SANTA ANA, Calif. - A pension fund has shown that a financial institution and its former CEO's failure to disclose their connection to a convicted fraudster and Ponzi scheme operator were material and that the CEO acted with scienter in failing to disclose his ties to the fraudster, a federal judge...

Mealey's Securities/D&O Liability - Shkreli Seeks Acquittal On Conspiracy To Commit Securities Fraud Claim

BROOKLYN, N.Y. - The U.S. government misled jurors by using a legally flawed definition of the term affiliate and its application to a conspiracy to commit securities fraud claim against former pharmaceutical company CEO and hedge fund manager Martin Shkreli in his criminal case, which prejudiced the...

Mealey's Securities/D&O Liability - Investor Failed To Show That Bank's Internal Controls Were Flawed, Judge Rules

NEW YORK - An investor has failed to show that an investment bank and two of its senior executives violated provisions of federal securities law by failing to adequately monitor the bank's internal controls in the wake of a former employees' massive securities fraud scheme, a federal judge in...

Mealey's Securities/D&O Liability - First Securities Class Action Filed In Wake Of Equifax Data Breach

ATLANTA - Following credit monitoring and reporting firm Equifax Inc.'s Sept. 7 announcement of a massive data breach involving 143 million consumers and numerous consumer class action filings, a securities class action complaint was filed on Sept. 8 in Georgia federal court (Hampden Kuhns v. Equifax...

Mealey's Securities/D&O Liability - Judge: Reliance On Erroneous Information In Securities Suit Fatal To Claims

OAKLAND, Calif. - The lead plaintiff in a securities class action lawsuit against a clinical stage biopharmaceutical company relied on erroneous information in arguing that the company and certain of its senior executives concealed from investors certain adverse events observed in a phase III clinical...

Mealey's Securities/D&O Liability - Judge Revoke's Shkreli's Bail After Social Media Posts About Clinton

BROOKLYN, N.Y. - Ruling that former pharmaceutical company CEO and hedge fund manager Martin Shkreli failed to show that he is not a "danger to the safety of any other person or the community if released," the New York federal judge overseeing Shkreli's criminal proceedings on Sept. 13...

Mealey's Securities/D&O Liability - Judge Grants Investors' Motion To Amend In BlackBerry Securities Class Action

NEW YORK - Newly uncovered evidence that could show that mobile device manufacturer BlackBerry Ltd. and certain of its former executive officers concealed declining sales of its new Z10 smartphone and other 10 series mobile devices is enough to warrant amendment of a shareholder class action complaint...

Mealey's Securities/D&O Liability - Judge Allows Majority Of Claims To Survive In Securities Class Action

NEW YORK - A federal judge in New York on Sept. 19 substantially rejected a motion to dismiss filed by defendants in a securities class action lawsuit, ruling that the lead plaintiff in the action has properly pleaded a majority of its federal securities law claims (In re VEON Ltd. Securities Litigation...

Mealey's Securities/D&O Liability - Swedish Telecom Provider To Pay Nearly $1B To Settle FCPA Claims

WASHINGTON, D.C. - Swedish telecommunications provider Telia Co. AB has agreed to pay nearly $1 billion as part of a global settlement with U.S., Dutch and Swedish officials for its role in a massive bribery and money laundering scheme with government officials in Uzbekistan, according to documents filed...

Mealey's Securities/D&O Liability - Aegerion To Pay $35M To Settle Criminal, False Claims Cases, $4M To Settle SEC Action

BOSTON - Aegerion Pharmaceuticals Inc. will pay more than $35 million to resolve federal criminal misdemeanor charges and civil claims that it promoted its expensive cholesterol drug Juxtapid for off-label uses and violated patient privacy and kickback laws in the process, the U.S. Attorney's Office...

Mealey's Securities/D&O Liability - SEC Investigation Is 'Prior Or Pending' Claim; No Coverage, Federal Judge Says

NEW YORK - Ruling on dueling summary judgment motions, a New York federal judge held Sept. 25 that an investigation by the Securities Exchange Commission against a private investment firm insured is excluded from coverage because it was pending before the August 2011 inception of an excess directors...

Mealey's Securities/D&O Liability - Securities Claims Allowed To Proceed In Wal-Mart Investor Class Action

FAYETTEVILLE, Ark. - A retirement system has standing to bring its federal securities law claims against Wal-Mart Stores Inc. and its CEO to recover for damages sustained by the company as part of its alleged attempt to cover up a bribery scheme at its Mexican subsidiary because investors, not the company...

Mealey's Securities/D&O Liability - Government Allowed To Participate In Securities Suit Appeal Oral Arguments

WASHINGTON, D.C. - The U.S. Supreme Court on Oct. 10 granted Acting Solicitor General Noel Francisco's motion for leave to participate in oral arguments as amicus curiae and for divided argument in a securities class action lawsuit challenging a federal appellate court's ruling that Item 303...

Mealey's Securities/D&O Liability - Judge Grants Preliminary Approval Of $28.5M Settlement In IPO Suit

NEW YORK - A federal judge in New York on Oct. 11 granted preliminary approval of a $28.5 million securities class action settlement between shareholders and a global eCommerce company and others, ruling that the proposed settlement offer is fair, reasonable and adequate (In re Cnova N.V. Securities...

Mealey's Securities/D&O Liability - Investors Found To Have Pleaded Control-Person Liability In Securities Suit

HARTFORD, Conn. - Investors have properly pleaded each of their state and federal securities laws claims against the co-founder of a virtual currency mining company, a federal judge in Connecticut ruled Oct. 11 in denying the defendant's motion to dismiss all claims against him (Denis M. Audet, et...

Mealey's Securities/D&O Liability - Federal Securities Claims Against Off-Road Vehicle Manufacturer Dismissed

MINNEAPOLIS - A pension fund failed to plead any actionable misstatements or omissions or scienter in arguing that off-road vehicle (ORV) manufacturer Polaris Industries Inc. and certain of its current and former executive officers concealed certain defects in its products that led to recalls of certain...

Mealey's Securities/D&O Liability - High Court Removes Securities Suit Oral Arguments From Calendar

WASHINGTON, D.C. - The U.S. Supreme Court on Oct. 17 removed from the calendar oral arguments in an appeal of a securities class action ruling regarding Securities and Exchange Commission Regulation S-K Item 303's duty to disclose provision for federal securities law claims and stayed the action...

Mealey's Securities/D&O Liability - Prosecutors Argue Against Telling Jurors About Shkreli's Partial Acquittal

BROOKLYN, N.Y. - Jurors in the criminal proceedings against alleged co-conspirator to convicted former pharmaceutical company CEO Martin Shkreli's massive securities fraud scheme Evan Greebel should not be made aware of Shkreli's acquittal on conspiracy to commit wire fraud charges, federal prosecutors...