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The 10b-5 Daily

News and events related to securities class action litigation. Containing all facts, with particularity, and an occasional dose of commentary.

Last Build Date: Sat, 07 Jan 2017 18:40:10 +0000


Halliburton Settled (Again)bezahlt1

Sat, 07 Jan 2017 18:30:27 +0000

When the district court rejected a $6 million settlement in the Halliburton securities class action back in 2004, the judge probably expected the parties to renegotiate.  Many years later, after a change in plaintiffs’ counsel, three trips to the Fifth … Continue reading (image)

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Not Exactly Meritlessbezahlt1

Tue, 06 Dec 2016 00:01:53 +0000

Can a company face securities fraud liability for describing a lawsuit brought against it as “meritless” if the plaintiff goes on to win a big verdict?  In Grobler v. Neovasc, Inc., 2016 WL 6897760 (D. Mass. Nov. 22, 2016), Neovasc was hit … Continue reading (image)

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On This Recordbezahlt1

Mon, 07 Nov 2016 23:27:54 +0000

On the same day that it issued its “Model V” decision, the Second Circuit issued another opinion in the Vivendi securities litigation addressing whether “value investors” can invoke the fraud-on-the-market presumption of reliance. In Gamco Investors, Inc. v. Vivendi Universal, S.A., 2016 WL … Continue reading (image)

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Don’t Buy a “Model V”bezahlt1

Sat, 01 Oct 2016 12:40:11 +0000

In a typical securities fraud case, where the plaintiff alleges that a misrepresentation artificially inflated the company’s stock price, the defendant may be able to rebut reliance by providing evidence that there was no stock price increase as a result … Continue reading (image)

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The Gold Standardbezahlt1

Mon, 12 Sep 2016 17:55:31 +0000

In securities class actions, plaintiffs sometimes struggle to establish loss causation where the market does not react consistently to the “revelations of the truth.” An interesting recent example can be found in a decision from the District of Nevada involving … Continue reading (image)

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A More Sober Approachbezahlt1

Fri, 19 Aug 2016 14:33:16 +0000

The author of The 10b-5 Daily has a guest post on Forbes concerning the use of confidential witnesses in securities class actions.  Please give it a read.(image)

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Scienter Sambabezahlt1

Thu, 07 Jul 2016 01:22:11 +0000

The Sixth Circuit continues to be a source of interesting opinions regarding corporate scienter.  In 2014, the court held in its Omnicare decision that only a limited set of corporate officers (including officers who had either made or approved the alleged misstatements) … Continue reading (image)

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Shaky Groundbezahlt1

Wed, 25 May 2016 22:46:06 +0000

In Halliburton II, the U.S. Supreme Court held that defendants can rebut the fraud-on-the-market presumption of reliance at the class certification stage with evidence of a lack of stock price impact.  In a typical case, where the plaintiff alleges that a … Continue reading (image)

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Tell Me Something Newbezahlt1

Tue, 26 Apr 2016 00:31:22 +0000

Plaintiffs often establish the existence of loss causation by pointing to a “corrective disclosure” that allegedly revealed the fraud and led to a stock price decline. What a disclosure must contain to be deemed “corrective,” however, has been the subject … Continue reading (image)

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Don’t Toutbezahlt1

Wed, 16 Mar 2016 19:22:48 +0000

A number of years ago, the U. S. Court of Appeals for the Fourth Circuit addressed whether a company’s false statement about its CEO’s educational background was material.  The court found that the statement was immaterial as a matter of law, … Continue reading (image)

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