LexisNexis® Legal Newsroom
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...

Mealey's Securities/D&O Liability - U.S. Supreme Court Declines Review Of Mortgage-Backed Securities Rulings

WASHINGTON, D.C. - The U.S. Supreme Court on June 25 declined to hear appeals in a pair of related securities fraud lawsuits, originally brought by the Federal Housing Finance Agency (FHFA) and stemming from the sale of residential mortgage-backed securities to government-sponsored agencies (GSEs) Federal...

Mealey's Securities/D&O Liability - Split 2nd Circuit Panel Again Affirms Insider Trading Conviction

NEW YORK - A divided Second Circuit U.S. Court of Appeals panel on June 25 affirmed the conviction of a portfolio manager for his involvement in an insider trading scheme, ruling that although a federal district court's jury instruction was not in line with the U.S. Supreme Court's ruling in...

Mealey's Securities/D&O Liability - 4th Circuit Panel Overturns Money Laundering Conviction

RICHMOND, Va. - A man convicted on claims of money laundering and other crimes was represented on appeal by ineffective counsel, a Fourth Circuit U.S. Court of Appeals panel ruled June 26 in vacating a federal district court's contrary order and remanding the action to the district court for proceedings...

Mealey's Securities/D&O Liability - Madoff Customer Claims Ruled Derivative Of Settled Fraudulent Transfer Claim

NEW YORK - Customers of Bernard L. Madoff Investment Securities LLC (BLMIS) may not bring a federal securities law claim against the estate and related entities of one of Madoff's investors because the claim is derivative of the BLMIS bankruptcy trustee's fraudulent transfer claim against the...

Mealey's Securities/D&O Liability - Securities Law, Other Claims Trimmed In Shareholder Derivative Suit

BALTIMORE - A federal judge in Maryland on July 3 ruled that investors in a shareholder derivative lawsuit failed to plead transaction causation in arguing that certain current and former officers and directors of a real estate investment trust (REIT) and the company that managed it violated federal...

Mealey's Securities/D&O Liability - Shareholders Ask District Court To Deny Dismissal Motions In Securities Suit

LOS ANGELES - Class representatives in a securities class action lawsuit against a Canadian precious metals streaming company, its auditor and others argue in a July 6 opposition brief that their second amended complaint should not be dismissed because their claims have been proven through discovery...

Mealey's Securities/D&O Liability - Panel's Ruling Vacating Bond Trader's Securities Fraud Conviction Stands

NEW YORK - Without providing explanation, a Second Circuit U.S. Court of Appeals panel on July 9 denied the U.S. government's petition for rehearing in an appeal of a bond trader's conviction on charges that he engaged in a securities fraud scheme to defraud investors in the residential mortgage...

Mealey's Securities/D&O Liability - Investors Argue No Circuit Split Exists For Loss-Causation Pleading Standard

WASHINGTON, D.C. - No split among the federal circuit courts exists as to the proper application of the loss-causation pleading standard, and as a result, review of a Sixth Circuit U.S. Court of Appeals ruling that shareholders of a for-profit hospital operator pleaded loss causation in making their...

Mealey's Securities/D&O Liability - 3rd Circuit Panel Upholds Dismissal Of Claims Against Mutual Fund Managers

PHILADELPHIA - A federal district court did not err in dismissing a derivative lawsuit brought by parties to variable annuity contracts with AXA Life Insurance Co. because the plaintiffs failed to show that AXA and its subsidiary breached their fiduciary duty by charging excessive management and fund...

Mealey's Securities/D&O Liability - Dismissal Of ICA Claim In Shareholder Derivative Lawsuit Affirmed

SAN FRANCISCO - A Ninth Circuit U.S. Court of Appeals panel on July 13 ruled that no private right of action exists under the Investment Company Act of 1940 (ICA) for challenging "the continued validity of an ICA exemption," affirming a federal district court's dismissal of a shareholder...

Mealey's Securities/D&O Liability - Dismissal Of Securities Suit Backed By Lack Of Scienter Allegations, Panel Rules

CHICAGO - A Seventh Circuit U.S. Court of Appeals panel on July 12 ruled that a federal district court did not err in dismissing a securities class action complaint against retailed Kohl's Corp. and certain of its executive officers with prejudice because a pension fund failed to show that the defendants...

Mealey's Securities/D&O Liability - Judge Grants Government's Request To Liquidate Shkreli's Brokerage Account

BROOKLYN, N.Y. - The federal judge in New York overseeing criminal proceedings against convicted former pharmaceutical company CEO and hedge fund manager Martin Shkreli on July 10 granted the U.S. government's motion to liquidate a portion of Shkreli's E*Trade brokerage account and apply the...

Mealey's Securities/D&O Liability - Shareholder Hits Real Estate Company With Securities Class Action

DENVER - A shareholder filed a securities class action lawsuit against a real estate company and certain of its executive officers in Colorado federal court on July 11, alleging that the defendants overstated the company's revenues for its farm real estate lending business in violation of federal...

Mealey's Securities/D&O Liability - Lead Plaintiff Asks Judge To Approve $2.95M Settlement Against Mortgage Banker

PHILADELPHIA - The lead plaintiff in a securities class action lawsuit against a mortgage banking firm and several of its executive officers asked a federal judge on July 13 to grant preliminary approval of a $2.95 million settlement in the action, arguing that the proposed settlement meets all statutory...

Mealey's Securities/D&O Liability - 9th Circuit Panel Rules That Toshiba ADRs Are Securities Under Exchange Act

SAN FRANCISCO - A Ninth Circuit U.S. Court of Appeals panel on July 17 ruled that Toshiba Corp. American Depositary Receipts (ADRs) are "securities" under the Securities Exchange Act of 1934, and a pension fund's purchase of Toshiba's ADRs on the over-the-counter market could be considered...

Mealey's Securities/D&O Liability - Panel Determines That FHFA Violates Separation Of Power

NEW ORLEANS - Although the Federal Housing Finance Agency (FHFA) acted within its statutory authority when it adopted a net worth sweep as conservator of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corp. (Freddie Mac), the FHFA itself is unconstitutionally...