LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - U.S. Supreme Court To Weigh In On Constitutionality Of SEC Judges

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 12 agreed to hear an appeal of a District of Columbia Circuit U.S. Court of Appeals ruling that Securities and Exchange Commission administrative law judges (ALJs) are constitutional officers pursuant to the appointments clause of the U.S. Constitution...

Mealey's Securities/D&O Liability - Investor Failed To Plead Misstatements, Scienter In Securities Suit, Judge Rules

NEW YORK - A lead plaintiff in a securities class action lawsuit against an energy company and certain of its current and former executive officers failed to plead any material misrepresentation or omissions or scienter to support his federal securities law claim that the defendants concealed that the...

Mealey's Securities/D&O Liability - High Court Defers Ruling On Securities Class Action Petition After Settlement

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 16 granted a joint emergency motion to defer consideration of a petition for a writ of certiorari in an appeal of a securities class action lawsuit that asks it to provide guidance to lower courts as to the evidence that is necessary under Supreme Court...

Mealey's Securities/D&O Liability - Parties Agree To $110M Accounting Fraud Class Action Settlement

NEW YORK - A data and metrics provider for the media, advertising and marketing industries will pay $110 million to settle claims that it and certain of its current and former officers and directors violated federal securities law by engaging in a massive accounting fraud, lead plaintiffs claim in a...

Mealey's Securities/D&O Liability - Securities Suit Remanded For Proper Application Of Basic Reliance Standard

NEW YORK - It is unclear whether a federal district court properly applied the correct standard in determining that defendants in a securities class action lawsuit failed to properly rebut the presumption of reliance by a preponderance of the evidence as required pursuant to the U.S. Supreme Court's...

Mealey's Securities/D&O Liability - Earnings Call Statements Not Protected By Safe Harbor Provision, Judge Rules

NEWARK, N.J. - Statements made by defendants in a securities class action lawsuit against a pet food company and certain of its executive officers in 2015 investor earnings calls were not forward-looking or protected by the safe harbor provision of the Private Securities Litigation Reform Act (PSLRA...

Mealey's Securities/D&O Liability - Attorney Invited To Brief, Argue As Amicus Curiae In SEC Judges Appeal

WASHINGTON, D.C. - An attorney may brief and argue an appeal of a District of Columbia Circuit U.S. Court of Appeals ruling that Securities and Exchange Commission administrative law judges (ALJs) are constitutional officers pursuant to the appointments clause of the U.S. Constitution, the U.S. Supreme...

Mealey's Securities/D&O Liability - Report: Securities Class Action Filings Reached Record Numbers In 2017

NEW YORK - Federal securities class action lawsuit filings reached record numbers in 2017, thanks in large part to the nearly 200 filed federal merger-objection suits, equating to a 44 percent increase over 2016 and a third straight year of securities class action filing growth, according to a report...

Mealey's Securities/D&O Liability - BNP Subsidiary To Plead Guilty To Role In FX Market Antitrust Scheme

NEW YORK - The U.S. subsidiary of BNP Paribas S.A. will pay $90 million after pleading guilty in New York federal court to its role in a massive price-fixing conspiracy in the foreign exchange (FX) market, according to a U.S. Department of Justice press release issued Jan. 26 (United States of America...

Mealey's Securities/D&O Liability - Report Shows 2017 Securities Class Action Filings Most Since PSLRA Enactment

BOSTON - Federal merger and acquisition (M&A) transaction securities class action lawsuit filings more than doubled in 2017 helping the total number of filings for the year to reach record numbers for the second straight year - the most since the Private Securities Litigation Reform Act of 1995 ...

Mealey's Securities/D&O Liability - Investor Class Certified In Securities Suit Against Medical Technology Company

MINNEAPOLIS - Shareholders have properly shown that an investor class in a securities class action lawsuit against a medical technology provider and several of its current and former executive officers meets all statutory requirements for certification, a federal judge in Minnesota ruled Jan. 30 in granting...

Mealey's Securities/D&O Liability - Outpatient Dialysis Provider To Pay $4M To Settle Stock-Drop Suit

BOSTON - A provider of outpatient dialysis services will pay $4 million to settle claims that it concealed its involvement in an insurance fraud scheme in violation of federal securities laws, according to a motion for preliminary approval of settlement filed by lead plaintiffs on Jan. 31 in a Massachusetts...

Mealey's Securities/D&O Liability - Shkreli's Sentencing Date Pushed Back To Allow Parties To Argue Loss, Forfeiture

BROOKLYN, N.Y. - The sentencing date for former pharmaceutical company CEO and hedge fund manager Martin Shkreli following his conviction on charges relating to his operation of a Ponzi scheme has been pushed back to March after a federal judge in New York on Jan. 31 issued a minute order setting a briefing...

Mealey's Securities/D&O Liability - Drug Maker To Pay Over $17.5M To Settle Claims It Hid Issues With Cancer Drug

BOSTON - A biopharmaceutical company and certain of its executive officers will pay more than $17.5 million to settle claims that they misrepresented poor clinical trial results for the company's cancer therapy drug tivozanib in violation of federal securities, shareholders claim in a Feb. 2 motion...

Mealey's Securities/D&O Liability - General Proximate Cause Test Found To Be Proper Test For Pleading Loss Causation

SAN FRANCISCO - A federal district court's application of a general proximate cause test was the proper test for determining loss causation in a securities class action lawsuit brought by shareholders against a solar energy company and certain of its current and former executive officers, a Ninth...

Mealey's Securities/D&O Liability - Lead Plaintiff Appointed In Tesla Stock-Drop Investor Class Action

SAN FRANCISCO - A shareholder was appointed lead plaintiff in a securities class action lawsuit against high-performance electric vehicles manufacturer Tesla Inc. and certain of its current and former executive officers, and his choice of counsel was appointed as lead counsel on Feb. 2 after a federal...

Mealey's Securities/D&O Liability - Parties Ordered To Submit Joint Statement On Issue Of Control-Person Liability

SALT LAKE CITY - A federal judge in Utah on Feb. 5 ordered parties to submit a joint statement of facts and questions for certification to the Utah Supreme Court to clarify what the applicable standard is for determining control-person liability under the Utah Uniform Securities Act (Gil A. Miller v...

Mealey's Securities/D&O Liability - Aetna, Board Of Directors Sued Over Lack Of Needed Merger Deal Information

NEW HAVEN, Conn. - A shareholder filed a securities class action complaint against insurance provider Aetna Inc. and its board of directors on Feb. 5 in Connecticut federal court, seeking to halt the company's proposed merger deal with CVS Health Corp. until shareholders are provided with information...

Mealey's Securities/D&O Liability - Misstatements In Securities Suit Found Not To Be Forward-Looking, Puffery

CHARLOTTE, N.C. - A technology-based provider of advanced fossil and renewable power generation equipment and two of its senior officials have failed to show that its alleged misstatements and omissions in a securities class action lawsuit are forward-looking, puffery or optimistic statements or that...

Mealey's Securities/D&O Liability - Judge: Evidence Not Sufficient To Alter Dismissal Ruling In Securities Suit

SAN FRANCISCO - Although a shareholder's motion to alter judgment in a securities class action lawsuit is procedurally proper and timely, newly discovered evidence is still insufficient to cure the shareholder's scienter and loss causation pleading deficiencies, a federal judge in California...

Mealey's Securities/D&O Liability - Investor Group Named Lead Plaintiff In Securities Suit, May Aggregate Losses

BOSTON - A group of investors may aggregate their losses and has met all statutory requirements to serve as lead plaintiff in a securities class action lawsuit against a biopharmaceutical company and two of its senior officers over misrepresentations that they made regarding the company's prospects...

Mealey's Securities/D&O Liability - Petitioners Permitted To Forgo Preparation Of Joint Index In SEC Judges Appeal

WASHINGTON, D.C. - The U.S. Supreme Court on Feb. 20 granted a motion for leave to dispense with preparation of joint index filed by petitioners in an appeal of a District of Columbia Circuit U.S. Court of Appeals ruling that Securities and Exchange Commission administrative law judges (ALJs) are constitutional...

Mealey's Securities/D&O Liability - Whistleblower Definition Narrowed In U.S. Supreme Court Ruling

WASHINGTON, D.C. - The whistleblower anti-retaliation provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 does not extend to individuals who report a securities law violation but do not report it to the Securities and Exchange Commission, the U.S. Supreme Court ruled Feb...

Mealey's Securities/D&O Liability - Panel Rejects District Court's Scienter Requirement Ruling In Securities Suit

PASADENA, Calif. - A Ninth Circuit U.S. Court of Appeals panel on April 20 ruled that pursuant to U.S. Supreme Court precedent, a federal district court improperly determined that a shareholder must plead scienter in making a claim under Section 14(e) of the Securities Exchange Act of 1934 instead of...

Mealey's Securities/D&O Liability - Former UBS Employee Not A Whistleblower Under Dodd-Frank

NEWARK, N.J. - A former UBS Financial Services Inc. employee cannot claim that he was retaliated against in violation of the anti-retaliation provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act because the former employee failed to show that he reported UBS's alleged securities...