LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - Report Show Massive Increase In Securities Class Action Filings In 2016

BOSTON - Federal securities class action filings hit record highs in 2016, up more than 40 percent of the average from 1997-2015, according to a report released Jan. 31 by economic and financial consulting firm Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse.

Mealey's Securities/D&O Liability - Federal Judge Won't Dismiss Common-Law Securities Fraud Claim

WILMINGTON, Del. - Several current and former executive officers and directors of an electric carmaker used "the wrong procedural tool" in arguing on behalf of dismissal of a common-law securities fraud claim against them, a federal judge in Delaware ruled Feb. 7 in denying a pair of dismissal...

Mealey's Securities/D&O Liability - Judge: Investors' Commodities Exchange Act Claims Don't Meet Morrison Standard

NEW YORK - A federal judge in New York on Feb. 8 dismissed an amended complaint filed by investors who alleged that a financial services firm and its CEO engaged in a scheme to manipulate prices at which certain futures contracts traded on the Chicago Mercantile Exchange Global Platform (CME Globex)...

Mealey's Securities/D&O Liability - Judge: Pension Funds Failed To Show That Company Misstated Financial Condition

WEST PALM BEACH, Fla. - Two pension funds failed to plead any material misrepresentations or omissions or scienter in arguing that a company and certain of its executive officers issued misstatements regarding the company's financial condition in the wake of an industry downturn, a federal judge...

Mealey's Securities/D&O Liability - Trader, CEO Concealed Subsidiary's Fraudulent Scheme, Investor Argues

NEW YORK - An online foreign exchange trading services provider and its CEO concealed that the company's American subsidiary had engaged in "false and misleading solicitations of its foreign exchange customers" in violation of federal securities laws, an investor argues in a Feb. 8 securities...

Mealey's Securities/D&O Liability - Judge Substantially Denies Dismissal Of Claims In Securities Class Action

DENVER - Shareholders have pleaded a majority of their claims against defendants in a securities class action lawsuit against a drug maker, certain of its current and former executive officers and others, a federal judge in Colorado found Feb. 9 in ruling on three different dismissal motions (Sonny P...

Mealey's Securities/D&O Liability - Investor Failed To Show Lack Of Disclosures Violated Securities Act, Judge Rules

NEW YORK - A lead plaintiff in a securities class action lawsuit against a business intelligence and marketing automation software service provider, certain of its executive officers and underwriters of the company's initial public offering (IPO) failed to show that the defendants violated federal...

Mealey's Securities/D&O Liability - Judge: Investors State No Actionable Misrepresentations In Securities Class Action

HOUSTON - Dismissal of a securities class action lawsuit is proper, a federal judge in Texas ruled Feb. 14, because lead plaintiffs failed to plead any actionable misrepresentations or scienter in arguing that an offshore energy services company and certain of its current and former executive officers...

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

SAN FRANCISCO - A shareholder has met all statutory requirements to serve as lead plaintiff in a securities class action lawsuit against a pharmaceutical company and certain current and former executive officers over their alleged misrepresentations concerning their involvement in a generic drug price...

Mealey's Securities/D&O Liability - Panel: Alleged Misstatements In Securities Class Action Were Forward-Looking

CINCINNATI - A federal district court did not err in dismissing a securities class action lawsuit because shareholders failed to plead scienter and the defendants' alleged misleading statements were forward-looking and protected, a Sixth Circuit U.S. Court of Appeals panel ruled Feb. 21 in affirming...

Mealey's Securities/D&O Liability - Federal Judge Trims Claims In LeapFrog Securities Class Action

SAN FRANCISCO - A lead plaintiff in a securities class action has failed to show that a developer of educational entertainment for children and two of its executive officers acted with scienter in failing to report goodwill impairment for the second quarter of 2015, but the lead plaintiff has pleaded...

Mealey's Securities/D&O Liability - Hedge Fund Manager's Motions To Vacate Sentence, Civil Forfeiture Denied

NEW YORK - Convicted hedge fund manager Raj Rajaratnam has failed to show that his trial counsel in his criminal proceedings was ineffective by failing to bring certain arguments on appeal of Rajaratnam's conviction for insider trading, a federal judge in New York ruled March 3 in denying a pair...

Mealey's Securities/D&O Liability - Judge: Investors Pleaded Elements Of Securities Law Claim Against Drug Company

CHICAGO - An investor group has shown that a pharmaceutical company and certain of its current and former executive officers issued a series of misrepresentations concealing certain financial reporting errors for fiscal year 2014 and concealing the integration of two companies it acquired in violation...

Mealey's Securities/D&O Liability - Defendants In Securities Suit Not Entitled To Sanctions Under PSLRA, Judge Rules

SAN JOSE, Calif. - Defendants in a securities class action lawsuit are not entitled to sanctions pursuant to the Private Securities Litigation Reform Act (PSLRA) because they have not shown that an investor's amended complaint was "legally or factually baseless from an objective perspective"...

Mealey's Securities/D&O Liability - Judge: Investors Failed To Plead Scienter In Chipotle Securities Suit

NEW YORK - Lead plaintiffs have failed to plead any material misrepresentations or scienter in making claims that Mexican restaurant chain Chipotle Mexican Grill Inc. and certain of its executive officers issued certain misrepresentations concealing issues surrounding a widespread series of E. coli outbreaks...

Mealey's Securities/D&O Liability - Shareholders May Amend Complaint To Add Claim In Securities Suit, Judge Rules

HOUSTON - Shareholders in a securities class action lawsuit against an energy company, several of its executive officers and directors and others may amend their complaint to add a claim for relief because their motion was filed prior to the deadline for amendments and amendment would not be futile,...

Mealey's Securities/D&O Liability - Investor Appeals Ruling In Yahoo Derivative Suit To 9th Circuit

SAN FRANCISCO - The plaintiff in a shareholder derivative lawsuit against Yahoo! Inc. and certain of its executive officers and directors on March 10 appealed a California federal judge's order dismissing the shareholder's second amended complaint with prejudice (UFCW Local 1500 Pension Fund...

Mealey's Securities/D&O Liability - Shareholder's Securities Law Claim Sufficiently Pleaded, Judge Rules

WILMINGTON, Del. - Defendants in a securities class action lawsuit over a proposed merger deal have failed to show that a shareholder did not provide sufficient evidence to support his claims that the defendants issued a series of misrepresentations and omissions in a proxy and registration statement...

Mealey's Securities/D&O Liability - SEC Seeks Rehearing Of 10th Circuit Ruling That ALJs Are Inferior Officers

DENVER - An appellate panel erred in holding that the Securities and Exchange Commission's administrative law judges (ALJs) are inferior officers and subject to appointment pursuant to the appointments clause of the U.S. Constitution, the SEC argues in a March 13 petition for rehearing or rehearing...

Mealey's Securities/D&O Liability - Banks Agree To Pay $165M To Settle Mortgage-Backed Securities Claims

NEW YORK - Underwriters Royal Bank of Scotland Securities Inc., Deutsche Bank Securities Inc. and Wells Fargo Advisors LLC on March 15 agreed to pay a combined $165 million to settle claims that they took part in a fraudulent scheme to misrepresent the underwriting standards they used in the offering...

Mealey's Securities/D&O Liability - Judge: Investors Failed To Plead Misstatements In Etsy Securities Class Action

BROOKLYN, N.Y. - Shareholders in a securities class action lawsuit against the operator of an online marketplace and certain of its executive officers have failed to show that the defendants issued any material misrepresentations or omission or acted with the requisite scienter, a federal judge in New...

Mealey's Securities/D&O Liability - Judge Dismisses Majority Of Securities Law Claims Against Solar Energy Company

LOS ANGELES - A federal judge in California on March 15 substantially dismissed a securities class action complaint against a solar energy products manufacturer and certain of its executive officers, ruling that shareholders failed to plead the requisite elements of a majority of their federal securities...

Mealey's Securities/D&O Liability - Lead Plaintiffs Seek Class Certification In Puma Biotech Securities Suit

SANTA ANA, Calif. - Lead plaintiffs in a securities class action lawsuit against a drug maker and certain of its executive officers asked a federal judge in California on March 15 to certify a class of investors, arguing that class certification is statutorily appropriate (Hsingching Hsu v. Puma Biotechnology...

Mealey's Securities/D&O Liability - Judge Certifies Class In Big Lots Securities Class Action Lawsuit

COLUMBUS, Ohio - Class certification in a shareholder lawsuit against a broad line closeout retailer and certain of its executive officers is proper because the lead plaintiff in the action has met all statutory requirements needed for certification, a federal judge in Ohio ruled March 17 (Alan Willis...

Mealey's Securities/D&O Liability - Judge: SEC Proxy Statement For Acquisition Deal Was Misleading, Material

PORTLAND, Ore. - Dismissal of a securities class action against a company and its board of directors for allegedly omitting key information in the Securities and Exchange Commission proxy statement for a proposed acquisition deal in an effort to have the company's stock sell for a lesser price is...