LexisNexis® Legal Newsroom
Comfort Orders in Bankruptcy Court To Advance Defense Costs for Directors and Officers Insurance

After entity coverage began to be added to the D&O insurance policy a couple of decades ago, a recurring problem in the bankruptcy context was whether or not the D&O policy proceeds were property of the estate under Bankruptcy Code Section 541 (a) and subject to the automatic stay under Bankruptcy...

Merck Settle Securities Lawsuits for $688 Million, Facebook IPO Derivative Suits Dismissed

In what may be the largest settlement ever in securities class action litigation involving a pharmaceutical company, Merck has agreed to a combined settlement of $688 million to settle two related securities class action cases. The company's February 14, 2013 press release announcing the settlements...

Pillsbury Winthrop: Proxy Season Brings 'Third Wave' Of Shareholder Litigation

The first wave of "say on pay" litigation involved lawsuits brought by shareholders following a negative advisory say on pay vote under the Dodd-Frank Act. The second wave of say on pay litigation , which picked up in 2012, involved plaintiffs' efforts to enjoin upcoming shareholder votes...

Cybersecurity Will Be Hot Button Issue For Affected Companies

I am sure many readers were disturbed as I was by the February 19, 2012 New York Times article reporting that a Chinese army unit apparently has been executing a concentrated cyber-hacking program targeting U.S. companies and critical U.S. infrastructure. (The report of consulting firm Mandiant that...

High Court Rules In Amgen Securities Class Action That Plaintiffs Not Required To Prove Materiality For Certification

In a much anticipated ruling in the Amgen securities class action litigation, the U.S. Supreme Court, in a 6-3 majority opinion written by Justice Ginsburg, held that a securities plaintiff is not required to prove that the allegedly misleading statements are material as a prerequisite to class certification...

Securities Class Action Lawsuits Against Life Sciences Companies Rose In 2012

The number of securities class action lawsuits filed against life sciences companies rose in both absolute and relative terms in 2012, according to a March 20, 2013 memorandum by David Kotler of the Dechert law form entitled "Survey of Securities Fraud Class Actions Brought Against U.S. Life Sciences...

Cornerstone Report Says Securities Class Actions Involving Accounting Allegations Less Likely To Be Dismissed, Take Longer To Resolve

Securities class action lawsuits involving accounting allegations are less likely to be dismissed, take longer to resolve, and make up a much greater proportion of total securities suit settlement dollars than non-accounting cases, according to a new report from Cornerstone Research. The report, entitled...

The Economist Says Litigation Funders Posting 'Fat Returns'

Third-party litigation funding's moment may already be here, as I have previously noted . But just the same, it is a little surprising to find stories about litigation funding at virtually every turn, with stories over the weekend appearing, for example, in The Economist and in the Wall Street Journal...

Parties To Countrywide Mortgage-Backed Securities Lawsuit Suit Settle For $500 Million

In what is the largest settlement so far of an mortgage-backed securities class action lawsuit filed as part of the subprime and credit-crisis securities litigation wave, the parties to the consolidated Countrywide mortgage-backed securities suit pending in the Central District of California have agreed...

Advisen Says Corporate and Securities Litigation Up Slightly In First Quarter, But Below Annual Averages

During the first quarter of 2013, new corporate and securities lawsuits and regulatory enforcement actions increased slightly compared to the fourth quarter of 2012 but remained well below annual averages over the last two years, according to a new report from Advisen, the insurance information firm...

Federal Appeals Courts Set Aside Dismissals In 2 Securities Class Actions

In two decisions last week - one in the Sixth Circuit and one in the First Circuit - federal appellate courts set aside lower court dismissals of securities class action lawsuits. Although the two cases are different and the two appellate opinions address different legal issues, the two decisions both...

Recent SEC Charges Raise Liability Questions For Government Entities

In two administrative enforcement actions last month, the SEC charged two municipalities - Harrisburg, Pa. and South Miami, Fla. - with securities fraud. These high-profile actions sounded alarm bells and raised concerns about possible securities violations involving other state and local governments...

Cornerstone Research Report: Securities Suits ‘Depressed’ In Year's First Half

Securities class action lawsuit filings “remained at depressed levels” during the first half of 2013 according to the latest report from Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse. The report, entitled “Securities Class Action Filings: 2013...

2nd Circuit Enforces FLSA Class Action Waiver

Earlier this summer when the U.S. Supreme Court issued its opinion in Italian Colors v. American Express , in which the Court enforced a class action waiver in an arbitration agreement to compel the claimants to arbitrate their antitrust claims, the decision seemed likely to have widespread impact even...

Bankers' Professional Liability Insurance Does Not Cover Overdraft Fee Class Action Settlement

A recurring question under the management liability insurance protection that banks typically acquire is the extent of the protection afforded under their policies’ professional liability provisions. One particular question that often arises is whether the policy affords coverage for customers’...