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Drugmaker, Investors Reach $20M Settlement In Stock Drop Suit
SEATTLE - Pharmaceutical company CTI BioPharma Corp. will pay $20 million to settle claims that it, its CEO and members of its board of directors and underwriters of two of the company's public offering of stock in 2015 concealed certain adverse information, including patient deaths, in the clinical trial results for CTI's myelofibrosis treatment drug pacritinib in violation of federal securities laws, according to a motion for preliminary approval of a securities class action settlement filed by the lead plaintiff in the action on Sept. 1 in Washington federal court (In re CTI BioPharma Corp. Securities Litigation, No. 16-0216, W.D. Wash.).



Many Claims Survive Motion To Dismiss In Securities Suit Against Mining Company
NEW YORK - Shareholders in a securities class action lawsuit against a mining company and certain of its current and former executive officers and directors have shown that the defendants issued a number of actionable false and misleading statements and have properly pleaded corporate scienter on the part of the company in making their federal securities law claims, a federal judge in New York ruled Aug. 29 in granting in part and denying in part the defendants' motion to dismiss (In re BHP Billiton Securities Litigation, No. 16-1445, S.D. N.Y., 2017 U.S. Dist. LEXIS 138834).



Judge: Reliance On Erroneous Information In Securities Suit Fatal To Claims
OAKLAND, Calif. - The lead plaintiff in a securities class action lawsuit against a clinical stage biopharmaceutical company relied on erroneous information in arguing that the company and certain of its senior executives concealed from investors certain adverse events observed in a phase III clinical trial for the company's hepatitis B drug in violation of federal securities laws, a federal judge in California ruled Sept. 12 in granting the defendants' motion to dismiss (In re Dynavax Securities Litigation, No. 16-6690, N.D. Calif., 2017 U.S. Dist. LEXIS 147760).



Judge Grants Investors' Motion To Amend In BlackBerry Securities Class Action
NEW YORK - Newly uncovered evidence that could show that mobile device manufacturer BlackBerry Ltd. and certain of its former executive officers concealed declining sales of its new Z10 smartphone and other 10 series mobile devices is enough to warrant amendment of a shareholder class action complaint so that shareholders may properly plead the elements of their federal securities law claims, a federal judge in New York ruled Sept. 13 in granting the shareholders leave to amend (Marvin Pearlstein v. BlackBerry Ltd., et al., No. 13-7060, S.D. N.Y.; 2017 U.S. Dist. LEXIS 148479).



Investor Failed To Show That Bank's Internal Controls Were Flawed, Judge Rules
NEW YORK - An investor has failed to show that an investment bank and two of its senior executives violated provisions of federal securities law by failing to adequately monitor the bank's internal controls in the wake of a former employees' massive securities fraud scheme, a federal judge in New York ruled on Sept. 8 in granting the defendants' motion to dismiss without prejudice (Gregory G. Barrett v. PJT Partners Inc., et al., No. 16-2841, S.D. N.Y., 2017 U.S. Dist. LEXIS 145781).



Judge: Pension Fund Pleaded Misrepresentation, Scienter In Securities Suit
SANTA ANA, Calif. - A pension fund has shown that a financial institution and its former CEO's failure to disclose their connection to a convicted fraudster and Ponzi scheme operator were material and that the CEO acted with scienter in failing to disclose his ties to the fraudster, a federal judge in California ruled Sept. 6 in denying the defendants' motions to dismiss in a securities class action lawsuit (In re Banc of California Securities Litigation, No. 17-0118, C.D. Calif., 2017 U.S. Dist. LEXIS 145361).



Judge Revoke's Shkreli's Bail After Social Media Posts About Clinton
BROOKLYN, N.Y. - Ruling that former pharmaceutical company CEO and hedge fund manager Martin Shkreli failed to show that he is not a "danger to the safety of any other person or the community if released," the New York federal judge overseeing Shkreli's criminal proceedings on Sept. 13 revoked Shkreli's bail and remanded him to custody pending sentencing on his conviction for securities fraud and conspiracy, according to a minute entry on the docket for the proceedings (United States of America v. Martin Shkreli, No. 15-637, E.D. N.Y.).



Judge Appoints Lead Plaintiff In Securities Suit Over Proposed Merger Deal
DENVER - An investor has met all statutory requirements necessary to serve as lead plaintiff in a securities class action lawsuit alleging that a company and certain of its executive officers and directors filed Securities and Exchange Commission registration statements in connection with a proposed merger deal that were inadequate and failed to disclose necessary information to shareholders in violation of federal securities laws, a federal judge in Colorado ruled Aug. 17 in appointing one of the shareholders as lead plaintiff and naming lead counsel (George Assad v. DigitalGlobe Inc., et al., No. 17-1097. D. Colo., 2017 U.S. Dist. LEXIS 131044).



Judge Rejects CalPERS Statute Of Repose Argument In Securities Class Action
HOUSTON - Reconsideration of a federal district court's ruling granting class certification in a securities class action lawsuit against an energy company, certain of its officers and directors and others is not warranted pursuant to U.S. Supreme Court precedent in California Public Employees Retirement System (CalPERS) v. ANZ Securities Inc. because nothing in the high court's ruling holds that a timely filed class action lawsuit fails to "satisfy the statute of repose for class members who do not opt out," a federal judge in Texas ruled Aug. 23 in denying the defendants' motion (In re Cobalt International Energy Inc. Securities Litigation, No. 14-3428, S.D. Texas, 2017 U.S. Dist. LEXIS 91938).



Class Definition In Securities Suit Against Medical Tech Company Limited
SAN JOSE, Calif. - On the heels of his ruling from the bench to limit the class definition for a securities class action lawsuit against a medical technology developer and certain of its current and former executive officers, a federal magistrate judge on Sept. 6 issued a written ruling explaining his decision to limit the class definition to including only "indirect" investors in the company's stock (Robert Colman, et al. v. Theranos Inc., et al., No. 16-6822, N.D. Calif.).



Investor Awarded Over $33,000 In Fees, Expenses In Citigroup Securities Suit
NEW YORK - A shareholder in a securities class action lawsuit against Citigroup Inc. and others over their alleged issuance of misrepresentations regarding the financial institution's exposure to the subprime mortgage lending crisis has shown that he is entitled to $33,412.50 in attorney fees and expenses incurred as part of his objection to the distribution of settlement funds to three cy pres beneficiaries that were designated by class counsel, a federal judge in New York ruled Sept. 1 in granting the investor's motion (In re Citigroup Inc. Securities Litigation, No. 07-9901, S.D. N.Y., 2017 U.S. Dist. LEXIS 141719).



Defendants: SLUSA Divests State Courts Of Jurisdiction Over '33 Act Claims
WASHINGTON, D.C. - The U.S. Supreme Court should overturn a California Superior Court ruling that shareholders in a securities class action are not preempted from bringing their claims under the Securities Act of 1933 by the Securities Litigation Uniform Standards Act (SLUSA) because the provisions of SLUSA divest state courts of jurisdiction over Securities Act claims, defendants in the action argue in an Aug. 28 petitioner brief (Cyan Inc. v. Beaver County Employees Retirement Fund, et al., No. 15-1439, U.S. Sup.).



Parties File Briefs As Amici Curiae In Support Of Defendants In Securities Suit
WASHINGTON, D.C. - The Washington Legal Foundation (WLF) and DRI - The Voice of the Defense Bar each recently filed briefs as amici curiae in support of defendants in a U.S. Supreme Court appeal of a California Superior Court ruling that shareholders in a securities class action are not preempted from bringing their claims under the Securities Act of 1933 by the Securities Litigation Uniform Standards Act (SLUSA) (Cyan Inc. v. Beaver County Employees Retirement Fund, et al., No. 15-1439, U.S. Sup.).



Omission Of Key Information In SEC Filings Is Deceptive, Lead Plaintiffs Argue
WASHINGTON, D.C. - A company's withholding of material information in its Securities and Exchange Commission reporting documents is deceptive to investors "even if the affirmative statements in the filing are otherwise true so far as they go," lead plaintiffs in securities class action lawsuit argue in a respondent's brief filed Aug. 31 in the U.S. Supreme Court (Leidos Inc., v. Indiana Public Retirement System, et al., No. 16-581, U.S. Sup., 2017 U.S. S. Ct. Briefs LEXIS 3177).



Shkreli Seeks Acquittal On Conspiracy To Commit Securities Fraud Claim
BROOKLYN, N.Y. - The U.S. government misled jurors by using a legally flawed definition of the term affiliate and its application to a conspiracy to commit securities fraud claim against former pharmaceutical company CEO and hedge fund manager Martin Shkreli in his criminal case, which prejudiced the jury, requiring acquittal on the count, Shkreli argues in Sept. 8 post-trial motion for acquittal (United States of America v. Martin Shkreli, No. 15-637, E.D. N.Y.).



1st Securities Class Action Filed In Wake Of Equifax Data Breach
ATLANTA - Following credit monitoring and reporting firm Equifax Inc.'s Sept. 7 announcement of a massive data breach involving 143 million consumers and numerous consumer class action filings, a securities class action complaint was filed on Sept. 8 in Georgia federal court (Hampden Kuhns v. Equifax Inc., et al., N.D. Ga.).



Investor Sues Pipe Maker, Others Over Financial Condition Misstatements
BROOKLYN, N.Y. - A manufacturer of water and drainage pipes and various precast products, and certain of its executive officers and directors issued misrepresentations in Securities and Exchange Commission documents for an initial public offering (IPO) regarding the company's business and financial condition in violation of federal securities laws, a shareholder argues in an Aug. 23 securities class action complaint filed in New York federal court (Matthew Spindler v. Forterra Inc., et al., No. 17-4978, E.D. N.Y.).



Former CEO Shkreli Convicted On Securities Fraud, Conspiracy Claims
BROOKLYN, N.Y. - A federal jury in New York on Aug. 4 convicted former pharmaceutical company CEO and hedge fund manager Martin Shkreli on claims that he orchestrated a massive Ponzi scheme over a six-year span while CEO of Retrophin Inc. (United States of America v. Martin Shkreli, No. 15-637, E.D. N.Y.).



Lead Plaintiffs Pleaded Actionable Misstatements In Securities Suit, Judge Rules
SANTA ANA, Calif. - Lead plaintiffs in a securities class action lawsuit against a restaurant chain, certain of its senior officers and others have properly shown that the defendants issued actionable misstatements and omissions regarding the business and financial condition of the company in violation of federal securities laws, a federal judge in California ruled Aug. 4 in denying the defendants' motion to dismiss (Daniel Turocy v. El Pollo Loco Holdings Inc., et al., No. 15-1343, C.D. Calif.).



2nd Circuit Overturns Convictions In Rabobank LIBOR Criminal Proceedings
NEW YORK - In what the Second Circuit U.S. Court of Appeals is calling the first criminal appeal related to the London Interbank Offered Rate (LIBOR) to reach a federal appellate court, the appeals court on July 19 overturned the convictions of two former employees of Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank), ruling that a district court erred in allowing compelled testimony because it is not allowed in U.S. criminal cases even when it was compelled by a foreign sovereign (United States of America v. Anthony Allen, et al., Nos. 16-898-cr and 16-939-cr, 2nd Cir.).



$97.5M Settlement Preliminarily Approved, Settlement Hearing Set In JCPenney Securities Suit
TYLER, Texas - A Texas federal judge on July 24 preliminarily approved a $97.5 million settlement on claims that retailer JCPenney Co. Inc. and certain of its executive officers misrepresented the company's business and financial condition in violation of federal securities laws and scheduled a settlement hearing for Nov. 29 (Alan B. Marcus v. JCPenney Company Inc., et al., No. 13-0736, E.D. Texas).



Lead Plaintiff Pleaded Elements Of Securities Law Claims, Judge Rules
SAN FRANCISCO - A federal judge in California on July 26 denied a motion to dismiss filed by defendants in a securities class action lawsuit against GoPro Inc. and certain of its executive officers, ruling that the lead plaintiff in the action properly pleaded a material misrepresentation or omission, scienter and loss causation in making his federal securities law claims (Anton Bielousov v. GoPro Inc., et al., No. 16-6654, N.D. Calif.; 2017 U.S. Dist. LEXIS 117223).



9th Circuit Panel Partially Overturns Securities Class Action Ruling
SEATTLE - A federal district court partially erred in dismissing a shareholder class action lawsuit against a health care company and its CEO over their alleged misrepresentations made with regard to its breast cancer screening products because the lead plaintiff has shown that certain of the defendants' statements were false and/or material in violation of federal securities laws, a Ninth Circuit U.S. Court of Appeals panel ruled Aug. 18 in partially reversing the lower court's ruling (In re Atossa Genetics Inc. Securities Litigation, No. 14-35933, 9th Cir., 2017 U.S. App. LEXIS 15658).



Misrepresentation Claims In Securities Suit Too Vague, 8th Circuit Panel Rules
ST. PAUL, Minn. - Lead plaintiffs in a securities class action lawsuit against a 3D printer manufacturer and certain of its executive officers have failed to plead any actionable misrepresentations in claiming that the defendants violated federal securities laws by misrepresenting the company's business prospects, an Eighth Circuit U.S. Court of Appeals panel ruled July 25 in affirming a federal district court's ruling dismissing the suit (In re Stratasys Ltd. Shareholder Securities Litigation, No. 16-3264, 8th Cir.; 2017 U.S. App. LEXIS 13370).



Judge: Investors Showed That Drug Maker Misrepresented Clinical Test Results
SANTA ANA, Calif. - Lead plaintiffs in a securities class action lawsuit against a pharmaceutical company and certain of its executive officers have shown that the defendants issued misrepresentations regarding the clinical trial results for the company's breast cancer treatment drug in violation of federal securities laws, a federal judge in California ruled July 25 in denying the defendants' motion to dismiss (Hsingching Hsu v. Puma Biotechnology Inc., et al., No. 15-0865, C.D. Calif.).



Judge: Investors Properly Pleaded Securities Law Claims Against Coffee Company
BURLINGTON, Vt. - Partial summary judgment is not warranted in a securities class action lawsuit against a coffee company and certain of its executive officers because lead plaintiffs have stated a plausible claim for relief in making their federal securities law claims, a federal judge in Vermont ruled July 21 in denying the defendants' motion for partial judgment on the pleadings (Louisiana Municipal Police Employees' Retirement System, et al. v. Green Mountain Coffee Roasters Inc., et al., No. 11-0289, D. Vt.; 2017 U.S. Dist. LEXIS 114473).



Federal Judge Grants Motion To Dismiss Securities Suit Against Energy Company
SAN JOSE, Calif. - A California federal judge on Aug. 11 granted a motion to dismiss a securities class action lawsuit filed against a solar energy company and certain of its executive officers after determining that the plaintiffs failed to adequately allege falsity and scienter (In re SolarCity Corp. Securities Litigation, No. 16-4686, N.D. Calif., 2017 U.S. Dist. LEXIS 129137).



Federal Judge Says Securities Violation Suit Filed Within Statute Of Limitations
NEW YORK - A New York federal judge on Aug. 14 denied a motion to dismiss filed by seven defendants in a suit alleging violations of the Securities Exchange Act after determining that the suit was filed within the act's two-year statute of limitations (Eton Park Fund L.P., et al. v. American Realty Capital Properties Inc., et al., No. 16-9393, S.D. N.Y., 2017 U.S. Dist. LEXIS 129990).



Judge Refuses To Dismiss Securities, UCL Claims Asserted By Club Investor
SAN DIEGO - After finding that the manager of a nightclub development company fraudulently induced an investor into investing money for the development of a new club, a California federal judge on Aug. 7 refused to dismiss the investor's claims for violation of California's unfair competition law (UCL) and securities fraud (Matthias Mueller v. San Diego Entertainment Partners LLC, et al., No. 16cv2997, S.D. Calif., 2017 U.S. Dist. LEXIS 77643).



Stock Drop Claims Survive Dismissal Motion In Securities Class Action
NEW YORK - A federal judge in New York on July 28 substantially denied dismissal of claims in a securities class action lawsuit against a specialty pharmaceutical company and certain of its current and former executive officers and directors, ruling that a shareholder has shown that the defendants violated federal securities laws by concealing a significant downsizing of its salesforce for one of its drugs, as well as the exclusion of the drug from the formularies of several of the nation's largest health insurers (Andrew Meyer v. Concordia International Corp., et al., No. 16-6467, S.D. N.Y., 2017 U.S. Dist. LEXIS 119436).



Securities Suit Remanded To District Court For Consideration Of New Evidence
NEW YORK - Ruling that a federal district court should first consider new evidence from a pair of enforcement actions against a company, a Second Circuit U.S. Court of Appeals panel on July 27 vacated a shareholder's appeal and remanded the action to the district court for further review of the new evidence (Retirement Board of the Policemen's Annuity and Benefit Fund of Chicago v. FXCM Inc., et al., No. 16-3775, 2nd Cir.).



American Pipe Tolling Does Not Apply To Claims In Securities Suit, Panel Rules
PHILADELPHIA - American Pipe & Construction Co. v. Utah tolling does not apply to claims in four related securities class action lawsuits against pharmaceutical companies and others that misrepresented the clinical trial results for a cholesterol treatment drug in violation of federal securities laws based on the U.S. Supreme Court's recent ruling in California Public Employees Retirement System v. ANZ Securities Inc., a Third Circuit U.S. Court of Appeals panel ruled Aug. 3 in reversing and remanding in a nonprecedential opinion (North Sound Capital LLC, et al. v. Merck & Co. Inc., et al., No. 16-1364, 3rd Cir.; GIC Private Limited v. Merck & Co. Inc., et al., No. 1365, 3rd Cir.; GIC Private Limited v. Merck & Co., et al., No. 16-1366, 3rd Cir.; and North Sound Capital LLC, et al. v. Merck & Co. Inc., et al., No. 16-1367, 3rd Cir.; 2017 U.S. App. LEXIS 14170).



Judge Trims Claims In Securities Class Action Against Drug Maker, Others
PHOENIX - A lead plaintiff in a securities class action lawsuit against a commercial-stage specialty pharmaceutical company and certain of its current and former executive officers has failed to show that a majority of the defendants' alleged misrepresentations concealing their involvement in an illegal kickback scheme with doctors were actionable and that seven of 10 alleged corrective disclosures had any causal connection to the alleged fraud, a federal judge in Arizona ruled Aug. 1 in granting in part and denying in part the defendants' motion to dismiss (Richard Di Donato, et al. v. Insys Therapeutics Inc., et al., No.16-0302, D. Ariz., 2017 U.S. Dist. LEXIS 120983).



Minnesota Federal Judge Dismisses ERISA, Securities Claims Against Target Corp.
MINNEAPOLIS - A Minnesota federal judge on July 31 granted Target Corp.'s motion to dismiss an Employee Retirement Income Security Act action and a securities action against it, finding that the ERISA claims failed to plausibly allege that the defendants breached their duty of prudence, duty of loyalty and duty to monitor plan investment committee members and that the plaintiffs failed to show that the defendants' statements were false or misleading when made, as required by the Private Securities Litigation Reform Act (In re: Target Corp. Securities Litigation, No. 16-1315; In re: Target Corp. ERISA Litigation, No. 16-2400, D. Minn., 2017 U.S. Dist. LEXIS 120055).



Investors: Loss-Causation Standard Misapplied In Dismissal Of Securities Suit
SAN FRANCISCO - A federal court applied an incorrect loss-causation analysis in granting summary judgment in favor of defendants in a securities class action lawsuit against a casino company and certain of its executive officers, and review of the ruling is necessary, lead plaintiffs argue in a July 14 appellant brief filed in the Ninth Circuit U.S. Court of Appeals (Pompano Beach Police & Firefighters Retirement System, et al. v. Las Vegas Sands Corp., et al., No. 17-15216, 9th Cir.).



Angie's List Sued Over False, Misleading Proposed Merger Deal Documents
INDIANAPOLIS - The board of directors and CEO of an online review and rankings site for service professionals in local areas filed documents in support of a proposed merger deal that failed to provide shareholders with the necessary information to conduct a proper vote on a proposed merger deal, a shareholder argues in a July 20 securities class action complaint filed in Indiana federal court (David Pill v. Angie's List Inc., et al., No. 17-2461, S.D. Ind.).



Medical Testing Provider Hit With Shareholder Securities Class Action
BOSTON - A shareholder filed a securities class action against a genetic tumor testing provider and certain of its executive officers on July 28, alleging that the defendants artificially inflated the company's stock price by misrepresenting that it was on track to receive Medicare reimbursement and coverage for its testing in violation of federal securities laws (Marc F. Mahoney v. Foundation Medicine Inc., et al., No. 17-11394, D. Mass.).



Technology, Shipping, Medical Companies Subject Of Securities Lawsuit Filings
Securities class action and shareholder derivative lawsuits against a dry goods shipping company, a provider of fertility services and technology companies highlight recent securities lawsuit filings.



Royal Bank Of Scotland To Pay $5.5B To Settle FHFA Securities Claims
NEW HAVEN, Conn. - Royal Bank of Scotland Group PLC will pay $5.5 billion to settle claims that it misrepresented the investment quality of certain mortgage-backed securities it sold to Fannie Mae and Freddie Mac in violation of state and federal securities laws, according to a press release issued July 12 by the Federal Housing Finance Agency, which is serving as conservator for Fannie Mae and Freddie Mac (Federal Housing Finance Agency v. Royal Bank of Scotland Group plc, et al., No. 11-1383, D. Conn.).



Split High Court: American Pipe Doesn't Extend Shareholders' Filing Limits
WASHINGTON, D.C. - A securities class action lawsuit filed by shareholders after opting out of a settlement class against the same defendants was untimely and properly dismissed, a split U.S. Supreme Court ruled June 26, finding that American Pipe & Construction Co. v. Utah, 414 U.S. 538 (1974), did not expand the three-year period allowed for in the Securities Exchange Act of 1934, which was found to be a statute of repose (California Public Employees' Retirement System v. Moody Investors Service Inc., et al., No. 16-373, U.S. Sup.).



High Court Won't Hear Appeal In Deepwater Horizon Securities Suit
WASHINGTON, D.C. - The U.S. Supreme Court on June 27 denied an investor's petition for writ of certiorari that sought to overturn a federal district court's dismissal of a securities class action lawsuit as time-barred against Transocean Ltd. and certain of its former executive officers stemming from the Deepwater Horizon explosion and oil spill (DeKalb County Pension Fund v. Transocean Ltd., et al., No. 16-206, U.S. Sup.).



Supreme Court Declines Review Of American Pipe Tolling Clarification Suit
WASHINGTON, D.C. - The U.S. Supreme Court on June 27 decided not to grant review of a New York federal court's dismissal of a securities class action lawsuit to determine whether the district court erred in ruling that investors' claims were not timely in contradiction of the high court's ruling in American Pipe & Construction Co. v. Utah (Russell Dusek, et al. v. JPMorgan Chase & Co., et al., No. 16-389, U.S. Sup.; 2016 U.S. S. Ct. Briefs LEXIS 3491).



High Court Won't Hear Appeal In American Pipe Tolling Securities Class Action
WASHINGTON, D.C. - The U.S. Supreme Court on June 27 declined review of a securities class action lawsuit against The Bear Stearns Cos. LLC and others, which sought to determine whether American Pipe & Construction Co. v. Utah tolling applies to statutes of repose (SRM Global Master Fund Limited Partnership v. The Bear Stearns Companies LLC, et al., No. 16-372, U.S. Sup.).



U.S. Supreme Court To Hear SLUSA Jurisdictional Provisions Appeal
WASHINGTON, D.C. - The U.S. Supreme Court on June 27 agreed to hear an appeal of a California Superior Court ruling that shareholders in a securities class action are not preempted from bringing their claims under the Securities Act of 1933 by the Securities Litigation Uniform Standards Act (SLUSA) (Cyan Inc. v. Beaver County Employees Retirement Fund, et al., No. 15-1439, U.S. Sup.).



U.S. High Court Will Decide On Reach Of Dodd-Frank's Whistleblower Provision
WASHINGTON, D.C. - The U.S. Supreme Court on June 26 agreed to decide whether the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010's whistleblower provision extends to individuals who have not reported the alleged misconduct to the Securities and Exchange Commission (Digital Realty Trust, Inc. v. Paul Somers, No. 16-1276, U.S. Sup.).



Panel Partially Overturns Class Certification Order In Securities Lawsuit
NEW YORK - A Second Circuit U.S. Court of Appeals panel on July 7 partially overturned a federal judge's class certification order, ruling that the judge failed to properly consider the U.S. Supreme Court's ruling in Morrison v. National Australia Bank, Ltd. in certifying two classes of investors in a securities class action lawsuit (In re Petrobras Securities Litigation, No. 16-1914, 2nd Cir., 2017 U.S. App. LEXIS 12219).



Semiconductor Developer To Pay $7.25M To Settle Securities Law Claims
SAN FRANCISCO - A semiconductor developer and certain of its executive officers will pay more than $7 million to settle claims that they violated federal securities laws by failing to disclose certain related party transactions in the company's financial statements, lead plaintiffs say in a motion for preliminary approval of settlement filed July 10 in California federal court (In re Montage Technology Group Limited Securities Litigation, No. 14-0722, N.D. Calif.).



Panel: Court Properly Dismissed Securities Claims Against Solar Company
NEW YORK - A federal district court did not err in dismissing a shareholder's second amended complaint in a securities class action lawsuit against a solar energy company and others because it was not required to disclose certain information in its offering documents for an initial public offering (IPO) based on circuit precedent, a Second Circuit U.S. Court of Appeals panel ruled June 21 (Robby S. Stadnick, et al. v. Vivint Solar Inc., et al., No. 16-65, 2nd Cir., 2017 U.S. App. LEXIS 11042).



Judge Denies Fund's Request To Amend Complaint In Securities Class Action
ST. CROIX, Virgin Islands - A federal judge in the U.S. Virgin Islands on July 5 denied a retirement system's request for leave to amend its securities class action complaint, ruling that amendment would be futile and that the retirement system had ample opportunities to correct the pleading deficiencies (City of Cambridge Retirement System, et al. v. Altisource Asset Management Corp., et al., No. 15-04, D. V.I., 2017 U.S. Dist. LEXIS 105243).



Judge Dismisses Shareholder Derivative Suit For Failure To Plead Demand Futility
NEW YORK - An investor failed to plead demand futility in claiming that the board of directors of The Wendy's Co. breached its fiduciary duty by failing to require the company to join an industry alliance, which allegedly led to consumer protests and boycotts of the fast food chain, a federal judge in New York ruled July 11 in granting the board's motion to dismiss (Samuel B. Trickey v. Emil J. Brolick, et al., No. 16-7789, S.D. N.Y.).



9th Circuit Denies Rehearing Of Falsity Pleading Standard Ruling
SAN FRANCISCO - Without providing further detail, the Ninth Circuit U.S. Court of Appeals on June 14 denied a retirement fund's petition for rehearing in a securities class action lawsuit against a tech company and certain of its current and former executive officers after a panel determined that the retirement fund failed to plead any of the required elements of falsity as required pursuant to the U.S. Supreme Court's ruling in Omnicare Inc., et al. v. The Laborers District Council Construction Industry Pension Fund and The Cement Masons Local 526 Combined Funds (City of Dearborn Heights Act 345 Police & Fire Retirement System v. Align Technology Inc., et al., No. 14-16814, 9th Cir.).



Split D.C. Circuit Panel Rejects Claims In SEC Appointments Clause Appeal
WASHINGTON, D.C. - Without providing further detail, an equally divided 10-judge panel of the District of Columbia Circuit U.S. Court of Appeals on June 26 denied on rehearing en banc an investment adviser and his company's argument that a lower court erred in determining that the Securities and Exchange Commission has appointed its administrative law judges in violation of the appointments clause of the U.S. Constitution (Raymond J. Lucia Companies Inc., et al. v. Securities and Exchange Commission, No. 15-1345, D.C. Cir.).



Panel: Securities Settlement Stands Despite Class's Claim That It Is Incomplete
ST. LOUIS - A panel of the Eighth Circuit U.S. Court of Appeals on June 12 affirmed a lower court's ruling that a company's payment to a class of bondholders who brought a class action alleging violations of a state securities act complied with the "unambiguous language" of a stipulated settlement despite the class's contention that the payment was incomplete (John W. Cromeans, et al. v. Morgan Keegan & Company, et al., No. 16-2417, 8th Cir.; 2017 U.S. App. LEXIS 10413).



Pa. Federal Judge Appoints Lead Plaintiff In Securities Fraud Class Action Suit
PHILADELPHIA - A Pennsylvania federal judge on June 13 appointed the lead plaintiff in a securities fraud class action suit after determining that the sole movant for lead plaintiff suffered the largest financial loss in the proposed class of more than $83,000 (Courtney Elkin v. Walter Investment Management Group et al., No. 17-2025, E.D. Pa., 2017 U.S. Dist. LEXIS 90156).



Judge Transfers Related Securities Suits To Illinois Federal Court
BATON ROUGE, La. - A transfer of venue to Illinois federal court is necessary because all public and private interests weigh heavily in favor of such action, a federal judge in Louisiana ruled July 5 in granting an expedited motion for transfer of venue in a securities class action lawsuit (Robert Berg v. Akorn Inc., et al., No. 17-0359, M.D. La., 2017 U.S. Dist. LEXIS 103917).



Shareholders Granted Leave To Amend Corporate Scienter Claims In Securities Suit
NEW YORK - A federal judge in New York on July 7 denied a motion for reconsideration filed by shareholders in a securities class action lawsuit, ruling that the shareholders failed to plead scienter against a company and its executive officers, but the judge granted the shareholders leave to amend to cure their corporate scienter pleading deficiencies (Raymond Thomas, et al. v. Shiloh Industries Inc., et al., No. 15-7449, S.D. N.Y., 2017 U.S. Dist. LEXIS 105291).



Excess Insurer Entitled To Recover $5M Settlement Payment, 9th Circuit Affirms
SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on July 7 affirmed a lower federal court's finding that a software firm insured's former first-layer excess directors and officers liability insurer is entitled to recover the $5 million it paid to settle an underlying securities action plus prejudgment interest from the insured's latter first-layer excess directors and officers liability insurer (Genesis Insurance Co. v. Magma Design Automation Inc. v. National Union Fire Insurance Company of Pittsburgh, Pa., No. 15-16999, 9th Cir., 2017 U.S. App. LEXIS 12194).



Petitioner: Congress Limited Private Right Of Action On Securities Claims
WASHINGTON, D.C. - Congress precluded judicial expansion of the private right of action on claims for violation of Section 10(b) of the Securities Exchange Act of 1934 and Securities and Exchange Commission Rule 10b-5, and a decision by a federal appellate court transgresses that limitation, a petitioner in a securities class action argues in a merits brief filed June 21 in the U.S. Supreme Court (Leidos Inc., v. Indiana Public Retirement System, et al., No. 16-581, U.S. Sup., 2017 U.S. S. Ct. Briefs LEXIS 2193).



Defendants In FDIC Securities Suit Seek High Court Review Of Ruling
WASHINGTON, D.C. - Review of a Second Circuit U.S. Court of Appeals ruling allowing a Federal Deposit Insurance Corp. lawsuit to proceed because it was filed within the three-year time period established by the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) is required, defendants argue in a June 26 petition for writ of certiorari filed in the U.S. Supreme Court (Credit Suisse First Boston Mortgage Securities Corp., et al. v. Federal Deposit Insurance Corp., No. 17-10, U.S. Sup., 2017 U.S. S. Ct. Briefs LEXIS 2274).



Lead Plaintiffs Seek Class Certification In Securities Suit Against Drug Maker
BOSTON - A federal judge should grant a motion for class certification filed by lead plaintiffs in a securities class action lawsuit against a biopharmaceutical company and certain of its executive officers because the lead plaintiffs have satisfied all statutory requirements for certification, the lead plaintiffs argue in a motion for class certification filed June 29 in Massachusetts federal court (In re AVEO Pharmaceuticals Inc. Securities Litigation, No. 13-11157, D. Mass.).



Investor: Drug Maker Concealed Dry Eye Drug Manufacturing Issues
NEWARK, N.J. - A shareholder sued a pharmaceutical company and certain of its executive officers on July 12 in New Jersey federal court, alleging that the defendants concealed manufacturing issues with the drug company's inflammatory dry eye disease medication in violation of federal securities laws (Dylan Caraker v. Ocular Therapeutix Inc., et al., No. 17-5095, D. N.J.).



Snapchat Parent Company Hit With Securities Class Action Over IPO Misstatements
LOS ANGELES - A shareholder on July 10 filed a securities class action complaint against a camera company, certain of its executive officers and underwriters of its initial public offering (IPO) in California federal court, alleging that the defendants concealed a slowdown in a key user engagement metric for its principal product, Snapchat, in violation of federal securities laws (Shinu Gupta v. Snap Inc., et al., No. 17-5054, C.D. Calif.).



Merger Deal Lawsuits Continue To Dominate Securities Suit Filings
Class action lawsuits stemming from proposed merger deals continue to dominate recently filed securities lawsuits throughout the country, while shareholders also recently filed securities class actions against industrial suppliers and a global provider of lightweight multimaterial solutions.