LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - SEC Levies $35 Million Fine For Failure To Disclose Yahoo Data Breach

WASHINGTON, D.C. - In an April 24 order, the Securities and Exchange Commission announced a $35 million penalty agreement with the successor of Yahoo! Inc., by which it settled charges that the internet firm misled investors by failing to report a massive 2014 data breach for two years (In re Altaba...

Mealey's Securities/D&O Liability - Panel: Lack Of Actionable Misrepresentations Dooms Etsy Securities Lawsuit

NEW YORK - Alleged misrepresentations made by online marketplace Etsy Inc., certain of its officers and directors and underwriters of its initial public offering (IPO) concealing deficiencies in the company's policies regarding the sale of counterfeit products were not actionable and, as a result...

Mealey's Securities/D&O Liability - Final Approval Of $100M Haliburton Securities Class Action Settlement Granted

DALLAS - A federal judge in Texas on April 25 granted final approval of a $100 million settlement in a long-running securities class action lawsuit between investors and Halliburton Co. and its CEO, who were alleged to have issued certain misrepresentations regarding the company's asbestos litigation...

Mealey's Securities/D&O Liability - FINRA Political Contribution Lawsuit Against SEC Transferred To D.C. Circuit

ATLANTA - The Georgia Republican Party (GRP) lacks standing to challenge the Securities and Exchange Commission's enactment of a rule limiting the ability Financial Industry Regulatory Authority (FINRA) members to make political contributions to government officials they solicitate for investment...

Mealey's Securities/D&O Liability - Defendant Seeks 2nd Circuit Rehearing On SLUSA Preclusion Ruling

NEW YORK - A Second Circuit U.S. Court of Appeals panel's ruling that a policyholder's "passive retention" of his annuity funds fails to meet the "in connection with" requirement for Securities Litigation Uniform Standards Act of 1998 (SLUSA) preclusion because an insurance...

Mealey's Securities/D&O Liability - High Court Will Not Hear Investor Appeal Of Basic Presumption Of Reliance Ruling

WASHINGTON, D.C. - The U.S. Supreme Court on April 30 declined a request by defendants in a securities class action lawsuit to review a Second Circuit U.S. Court of Appeals ruling to resolve a split among the circuit courts as to the proper way to rebut the fraud-on-the-market presumption of reliance...

Mealey's Securities/D&O Liability - Investment Adviser's Petition For Review Of SEC Ruling Dismissed

CHICAGO - An investment adviser's petition for review of a Securities and Exchange Commission's order denying his application for re-entry into the securities industry is untimely because it was not filed within the statutory window to file, a Seventh Circuit U.S. Court of Appeals panel ruled...

Mealey's Securities/D&O Liability - 2nd Circuit Panel Upholds Conviction In Securities Fraud Criminal Suit

NEW YORK - A Second Circuit U.S. Court of Appeals panel on April 26 ruled that a federal district court did not err in convicting a man on charges of mail fraud, securities fraud, wire fraud and health care fraud because the trial court was provided with sufficient evidence to support its conviction...

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

WEST PALM BEACH, Fla. - The lead plaintiff in a securities class action lawsuit against a mortgage servicing company and certain of its executive officers failed to plead any actionable misstatements or omissions in claiming that the defendants concealing the company's failure to cure certain business...

Mealey's Securities/D&O Liability - Shareholders Failed To Plead Elements Of Securities Law Claim, Panel Rules

NEW YORK - Shareholders failed to plead falsity and materiality as required in making their claims under federal securities law against a mining company and certain of its executive officers and directors, a Second Circuit U.S. Court of Appeals panel ruled May 1 in affirming a federal district court's...

Mealey's Securities/D&O Liability - Panel Vacates Bond Trader's Securities Fraud Conviction For 2nd Time

NEW YORK - For the second time, a Second Circuit U.S. Court of Appeals panel on May 3 vacated the conviction of a bond trader on charges that he engaged in a securities fraud scheme to defraud investors in the residential mortgage-backed securities (RMBS) market and remanded the judgment of conviction...

Mealey's Securities/D&O Liability - Proxy Statement For Proposed Merger Deemed Not Materially Misleading

LINCOLN, Neb. - A company was not required to list all possible financial disclosures that could possibly be relevant to the valuation of that company in an internal financial projection as part of a proxy statement for a proposed merger deal between two companies and, thus, the proxy report was not...

Mealey's Securities/D&O Liability - Wells Fargo To Pay $480M To Settle Cross-Selling Securities Fraud Suit

SAN FRANCISCO - Investment bank Wells Fargo & Co. has agreed to pay $480 million to settle claims that the company and several of its current and former senior executives and others engaged in a scheme whereby the bank would open deposit and credit card accounts for existing customers without their...

Mealey's Securities/D&O Liability - Panel Affirms SEC's Ruling That It Lacks Jurisdiction Over Damages Dispute

CHICAGO - The Securities and Exchange Commission did not err in dismissing a petition for damages for repayment of improper "payment for order flow" (PFOF) fees for lack of jurisdiction, and its ruling did not conflict with a Seventh Circuit U.S. Court of Appeals holding related to the instant...

Mealey's Securities/D&O Liability - Panel: Investors Did Not Show They Were Damaged By Market Manipulation Scheme

NEW YORK - Although investors have shown that they have standing to bring their claims for damages under the Commodities Exchange Act (CEA), they have failed to show that they were damaged as a result of a market manipulation scheme in which an oil and gas company and its affiliates manipulated the price...

Mealey's Securities/D&O Liability - Delaware Judge Enters Judgment For Verizon In Securities Coverage Suit

WILMINGTON, Del. - A Delaware Superior Court judge on May 7 found that Verizon Communications Inc. is entitled to more than $40 million plus prejudgment interest from its primary and excess executive and organization liability insurers for its underlying defense costs arising from securities claims ...

Mealey's Securities/D&O Liability - 2nd Circuit Panel Upholds Summary Judgment Ruling In Securities Suit

NEW YORK - A federal district court properly found that victims of a real estate investment scheme pleaded reliance, loss causation and scienter in claiming that an investment adviser misrepresented key aspects of the scheme to investors in violation of federal securities laws, a Second Circuit U.S....

Mealey's Securities/D&O Liability - SEC Ruling Upholding FINRA Sanctions In Investment Scheme Proper, Panel Rules

NEW YORK - A Second Circuit U.S. Court of Appeals panel on May 9 affirmed a Securities and Exchange Commission administrative proceeding ruling upholding sanctions issued against a general securities representative by the Financial Industry Regulatory Authority Inc. (FINRA) for his role in an investment...

Mealey's Securities/D&O Liability - High Court Asked To Defer Action On Pending Petition After Settlement Is Reached

WASHINGTON, D.C. - Parties in an appeal of a Ninth Circuit U.S. Court of Appeals securities class action ruling that sought clarification as to under which circumstances companies are protected by the safe harbor provision of the Private Securities Litigation Reform Act of 1995 (PSLRA) for making "non...

Mealey's Securities/D&O Liability - Investor Claims Against TD Ameritrade Subject To SLUSA Preclusion, Panel Rules

ST. LOUIS - An Eighth Circuit U.S. Court of Appeals panel on May 10 ruled that a federal district court properly determined that investor claims in three related lawsuits against broker services provider TD Ameritrade were precluded by the Securities Litigation Uniform Standards Act of 1998 (SLUSA) because...

Mealey's Securities/D&O Liability - 10th Circuit Panel Affirms Court's Dismissal Of Merger Deal Stock Drop Suit

DENVER - A 10th Circuit U.S. Court of Appeals panel affirmed dismissal of a securities class action May 11, ruling that the lead plaintiff failed to show that the defendants had a duty to disclose to investors that the defendants were in discussions with a second company when they announced a proposed...

Mealey's Securities/D&O Liability - U.S. Supreme Court Declines Review Of Whistleblower Award Dispute

WASHINGTON, D.C. - The U.S. Supreme Court on May 14 declined review of a Second Circuit U.S. Court of Appeals ruling that claimants are not entitled to whistleblower awards in a Securities and Exchange Commission action because their claims were filed nearly two years after the 90-day deadline for submitting...

Mealey's Securities/D&O Liability - High Court Won't Hear Appeal In Dodd-Frank Anti-Spoofing Case

WASHINGTON, D.C. - The U.S. Supreme Court on May 14 declined review of a Seventh Circuit U.S. Court of Appeals' affirmation of a commodity trader's conviction for violating the anti-spoofing provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act and engaging in commodities...

Mealey's Securities/D&O Liability - U.S. Supreme Court Declines Review Of Scienter Pleading Standard Dispute

WASHINGTON, D.C. - The U.S. Supreme Court on May 21 declined review of a Fourth Circuit U.S. Court of Appeals ruling that an investor failed to properly plead scienter in making his federal securities law claims against a company and two of its senior executives in a class action lawsuit (Maguire Financial...

Mealey's Securities/D&O Liability - Settlement In Shareholder Derivative Lawsuit Fails To Gain Final Approval

NEW YORK - Reforms agreed to by an investor and several former outside directors of an on-land and offshore wind turbine tower manufacturer in a proposed shareholder derivative lawsuit settlement fail to provide any meaningful benefit to the company the investor or the company's shareholders, a federal...