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Preview: LexisNexis® Mealey's™ Emerging Securities Litigation Legal News

LexisNexis® Mealey's™ Emerging Securities Litigation Legal News



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Deutsche Bank To Pay $220M To Settle LIBOR Rigging Allegations
NEW YORK - Deutsche Bank AG will pay $220 million to settle claims with the attorneys general of 44 states and the District of Columbia that it manipulated the U.S. Dollar London Interbank Offered Rate (LIBOR) and other benchmark interest rates, according to a press release issued Oct. 25 by New York Attorney General Eric Schneiderman.



RBS To Pay More Than $44M Under Terms Of RMBS Nonprosecution Agreement
NEW HAVEN, Conn. - A division of Royal Bank of Scotland (RBS) Group will pay more than $44 million as part of a nonprosecution agreement with the U.S. Attorney's Office for the District of Connecticut and U.S. Department of Justice (collectively, Justice Department) for its role in operating a massive scheme to defraud customers that traded in collateralized loan obligations (CLOs) and residential mortgage-backed securities (RMBS), prosecutors said in an Oct. 25 letter to counsel for RBS division RBS Securities Inc.



Solicitor General To Take Part In Oral Arguments In Dodd-Frank Suit
WASHINGTON, D.C. - The U.S. Supreme Court on Nov. 6 granted a motion by U.S. Solicitor General Noel C. Francisco to argue pro hac vice and for leave to participate in oral arguments as amicus curiae and for divided argument in an appeal of a Ninth Circuit U.S. Court of Appeals' ruling that a federal district court did not err in using a definition of the term "whistleblower" that was wider than the one established in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank) (Digital Realty Trust Inc. v. Paul Somers, No. 16-1276, U.S. Sup.).



High Court Sets Argument Time In Appeal Of Securities Class Action Ruling
WASHINGTON, D.C. - The U.S. Supreme Court on Nov. 6 issued an order granting in part a motion filed by U.S. Solicitor General Noel J. Francisco to participate in oral arguments as amicus curiae in 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) because the provisions of SLUSA divest state courts of jurisdiction over Securities Act claims (Cyan Inc. v. Beaver County Employees Retirement Fund, et al., No. 15-1439, U.S. Sup.).



High Court Removes Securities Suit Oral Arguments From Calendar
WASHINGTON, D.C. - The U.S. Supreme Court on Oct. 17 removed from the calendar oral arguments in an appeal of a securities class action ruling regarding Securities and Exchange Commission Regulation S-K Item 303's duty to disclose provision for federal securities law claims and stayed the action after the parties stated that they have reached a settlement (Leidos Inc., v. Indiana Public Retirement System, et al., No. 16-581, U.S. Sup.).



Shareholder's Failure To Plead Scienter Leads To Dismissal Of Securities Claims
BOSTON - A shareholder has failed to plead scienter in making her federal securities law claims against a clinical laboratory services provider and its CEO for their alleged role in concealing an illegal monopoly scheme with the provider's Brazilian affiliate, a federal judge in Massachusetts ruled Nov. 7 in granting the defendants' motion to dismiss (In re Psychemedics Corp. Securities Litigation, No. 17-10186, D. Mass., 2017 U.S. Dist. LEXIS 183955).



Claims In Securities Suit Against Cemetery Company, Others Dismissed
PHILADELPHIA - The lead plaintiff in a securities class action lawsuit against a funeral and cemetery services provider and others has failed to show that the defendants issued material misrepresentations or omissions in an attempt to conceal the company's poor financial condition in violation of federal securities laws, a federal judge in Pennsylvania ruled Oct. 31 in granting the defendants' motion to dismiss (Judson Anderson, et al. v. StonMor Partners L.P., No. 16-6111, E.D. Pa., 2017 U.S. Dist. LEXIS 179959).



Panel: Court Properly Dismissed Securities Suit For Failure To Plead Scienter
NEW YORK - A federal district court did not err in dismissing a securities class action lawsuit for failure to plead scienter because the lead plaintiff in the action failed to plead motive, conscious misbehavior or recklessness on the part of the defendants in making his federal securities law claims, a Second Circuit U.S. Court of Appeals panel ruled Oct. 13 in affirming (Christopher Wyche v. Advanced Drainage Systems Inc., et al., No. 17-743, 2nd Cir., 2017 U.S. App. LEXIS 20056).



Federal Securities Claims Against Off-Road Vehicle Manufacturer Dismissed
MINNEAPOLIS - A pension fund failed to plead any actionable misstatements or omissions or scienter in arguing that off-road vehicle (ORV) manufacturer Polaris Industries Inc. and certain of its current and former executive officers concealed certain defects in its products that led to recalls of certain models of ORVs in violation of federal securities laws, a federal judge in Minnesota ruled Oct. 13 in granting the defendants' motion to dismiss (In re Polaris Industries Inc. Securities Litigation, No. 16-3108, D. Minn.).



Securities Claims Against Drug Maker Dismissed For Failure To Plead Scienter
SEATTLE - The lead plaintiff in a securities class action against a developmental stage biopharmaceutical company and certain of its executive officers has shown that the defendants misrepresented the success and prospects for the company's cancer treatment drug in violation of federal securities laws but has failed to show that the defendants acted with the requisite scienter, a federal judge in Washington ruled Oct. 18 in granting the defendants' motion to dismiss without prejudice (Samit Patel v. Seattle Genetics Inc., et al., No. 17-41, W.D. Wash., 2017 U.S. Dist. LEXIS 172588).



Judge: Investor Failed To Plead Securities Law Claims Against Most Defendants
SAN DIEGO - A federal judge in California on Oct. 20 dismissed federal securities law claims against a majority of defendants in a securities class action lawsuit against a technology company and certain of its executive officers, ruling that the lead plaintiff in the action failed to properly plead any actionable misrepresentations or omissions, loss causation or scienter against those defendants (3226701 Canada Inc. v. Qualcomm Inc., et al., No. 15-2678, S.D. Calif., 2017 U.S. Dist. LEXIS 174367).



Lead Plaintiff Appointed In Securities Suit Against Communications Company
MONROE, La. - A federal magistrate judge in Louisiana on Oct. 20 appointed the state of Oregon, as trustee of its state employees retirement fund, as lead plaintiff in a securities class action against an integrated communications company and certain of its executive officers, ruling that the state has met all statutory requirements to serve in the role (Benjamin Craig v. CenturyLink Inc., et al., No. 17-1005, W.D. La., 2017 U.S. Dist. LEXIS 174514).



Shareholder Appointed Lead Plaintiff In Securities Class Action Lawsuit
COVINGTON, Ky. - A federal judge in Kentucky on Nov. 7 appointed a shareholder as lead plaintiff in a securities class action lawsuit against a manufacturer and distributor of fiber optic wire and cable products and certain of its executive officers, ruling that although it did not have the largest financial stake in the stock drop suit, it has met all other statutory requirements to serve in the role (Satish Doshi v. General Cable Corp., et al., No. 17-025, E.D. Ky., 2017 U.S. Dist. LEXIS 184254).



Judge Appoints Investor Group As Lead Plaintiff In Stock-Drop Lawsuit
SAN DIEGO - A federal judge in California on Nov. 7 appointed an investor group to serve as lead plaintiff in a securities class action lawsuit against a consumer and business banking provider and certain of its executive officers because the investor group meets all statutory requirements to serve as lead plaintiff, but the judge rejected the investor group's choice of co-lead counsel because the investor group failed to show that co-lead counsel is necessary (Bar Mandalevy v. BofI Holding Inc., et al., No. 17-0667, S.D. Calif., 2017 U.S. Dist. LEXIS 184504).



Securities Class Actions Transferred To Massachusetts Federal Court
NEWARK, N.J. - The transfer of three securities class action lawsuits against a pharmaceutical company and certain of its executive officers to Massachusetts federal court is warranted because the necessary private and public interest factors weigh in favor of transfer, a federal judge in New Jersey ruled Oct. 27 in granting the defendants' motion (Thomas Gallagher v. Ocular Therapeutix Inc., et al., No. 17-5011, D. N.J.; Dylan Caraker v. Ocular Therapeutix Inc., et al., No. 17-5095; Shawna Kim v. Ocular Therapeutix Inc., et al., No. 17-5704, D. N.J., 2017 U.S. Dist. LEXIS 179453).



Investor's Derivative Suit Allowed To Proceed After Demand Futility Showing
SAN FRANCISCO - An investor has properly pleaded demand futility in making his claims in a shareholder derivative lawsuit against the board of directors for a security technology company by showing that two of the board members acted in bad faith in deciding to terminate a special committee's investigation into the improper spending of the company's former CEO before it was completed, a federal judge in California ruled Oct. 27 in denying the defendants' motion to dismiss (Ryan Oswald v. Identiv Inc., et al., No. 16-0241, N.D. Calif., 2017 U.S. Dist. LEXIS 178676).



District Court's Dismissal Of Market Manipulation Claims In Securities Suit Upheld
PHILADELPHIA - An investor failed to plead actual or presumed reliance in making his market manipulation claims against the Philadelphia Stock Exchange and certain market participants in violation of federal securities laws, and a federal district court did not err in dismissing as a result, a Third Circuit U.S. Court of Appeals panel ruled Oct. 25 in affirming (I. Stephen Rabin v. NASDAQ OMX PHLX LLC, et al., No. 16-2511, 3rd Cir., 2017 U.S. App. LEXIS 21093).



Shareholders Failed To Cure Pleading Deficiencies In Securities Suit, Judge Rules
LOS ANGELES - Shareholders in a securities class action lawsuit against a content, connectivity and digital media solutions provider for the travel industry and certain of its former executive officers have failed to cure any of the pleading deficiencies that led to two prior dismissals of the lawsuit, a federal judge in California ruled Oct. 30 in granting the defendants' motion to dismiss with prejudice (M&M Hart Living Trust v. Global Eagle Entertainment Inc., et al., No. 17-1479, C.D. Calif., 2017 U.S. Dist. LEXIS 182106).



Court's Dismissal Of Etsy Securities Class Action Was Proper, Defendants Argue
NEW YORK - A federal district court properly dismissed a securities class action lawsuit against the operator of an online marketplace, certain of its executive officers and underwriters of the company's initial public offering (IPO) because shareholders failed to plead any actionable misstatements or omissions or the necessary elements of scienter in making their federal securities law claims, the defendants argue in a Nov. 1 appellee brief filed in the Second Circuit U.S. Court of Appeals (Saleh Altayyar, et al. v. Etsy Inc., et al., No. 17-1180, 2nd Cir.).



Summary Judgment Properly Granted In Securities Class Action, Defendants Say
SAN FRANCISCO - A federal district court properly granted summary judgment in a securities class action lawsuit against casino/resort owner Las Vegas Sands Corp. (LVS) and certain of its executive officers because the lead plaintiffs in the action failed to plead the required actionable misrepresentations or omissions or loss causation, defendants argue in an Oct. 13 answering 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.).



Summary Judgment Ruling In Short-Swing Profit Suit Was Erroneous, Investor Says
NEW YORK - A federal district court erred in granting summary judgment to defendants in a shareholder derivative lawsuit against hedge funds and a hedge fund manager because the defendants did not meet the statutory guidelines necessary to avoid disgorgement of certain short-swing profits they obtained as part of a stock purchase agreement (SPA) and stock exchange agreement (EA) the defendants had with freight shipping company YRC Worldwide Inc., a YRC shareholder argues in an Oct. 31 appellant brief filed in the Second Circuit U.S. Court of Appeals (Andrew E. Roth v. Solus Alternative Asset Management LP, et al., No. 17-2287, 2nd Cir.).



MassMutual, Goldman Move To Dismiss Securities Suit After Reaching Settlement
SPRINGFIELD, Mass. - Stating that they are the last two parties involved in the litigation and have reached a confidential settlement agreement, Massachusetts Mutual Life Insurance Co. and Goldman Sachs & Co. LLC on Oct. 24 jointly moved to dismiss a long-running securities lawsuit in which Goldman and others were alleged to have misrepresented the investment quality of mortgage-backed securities they issued to MassMutual in violation of federal securities laws (Massachusetts Mutual Life Insurance Co. v. Goldman Sachs Mortgage Co., et al., No. 11-30126, D. Mass, and Massachusetts Mutual Life Insurance Co. v. Merrill Lynch, Pierce, Fenner & Smith Inc., et al., No. 11-30285, D. Mass.).



Prosecutors Argue Against Telling Jurors About Shkreli's Partial Acquittal
BROOKLYN, N.Y. - Jurors in the criminal proceedings against alleged co-conspirator to convicted former pharmaceutical company CEO Martin Shkreli's massive securities fraud scheme Evan Greebel should not be made aware of Shkreli's acquittal on conspiracy to commit wire fraud charges, federal prosecutors argued Oct. 16 in an opposition to Greebel's request to disclose the information (United States of America v. Evan Greebel, No. 15-cr-0637, E.D. N.Y.).



Defendants In Securities Class Action Against Drug Maker Seek Dismissal
NEW YORK - Dismissal of a second amended shareholder class action lawsuit against a drug maker and certain of its current and former executive officers is warranted because the lead plaintiff in the action failed to state any actionable misrepresentations or scienter in making federal securities law claims, defendants argue in a Nov. 3 motion to dismiss filed in New York federal court (In re Insys Therapeutics Inc. Securities Litigation, No. 17-1954, S.D. N.Y.).



Orbital ATK Shareholders Sue To Seek Halt Of Vote On Proposed Merger Deal
ALEXANDRIA, Va. - Orbital ATK Inc. shareholders filed six different securities class action lawsuits between Oct. 11 and Oct. 25 in a Virginia federal court, seeking to halt a pending shareholder vote on a proposed merger deal that would see aerospace manufacturer Orbital ATK acquired by aerospace and defense technology company Northrop Grumman Corp. until shareholders receive certain information necessary to conduct a vote on the proposed deal.



Tesla Concealed Inadequate Inventory For Model 3 Sedan, Investors Argue
SAN FRANCISCO - High-performance electric vehicles manufacturer Tesla Inc. and certain of its current and former executive officers misled investors about certain production issues with the company's new Model 3 sedan that were causing a slowdown in production in violation of federal securities laws, an investor argues in an Oct. 10 securities class action complaint filed in California federal court (Gregory Wochos v. Tesla Inc., et al., No. 17-5828, N.D. Calif.).



Swedish Telecom Provider To Pay Nearly $1B To Settle FCPA Claims
WASHINGTON, D.C. - Swedish telecommunications provider Telia Co. AB has agreed to pay nearly $1 billion as part of a global settlement with U.S., Dutch and Swedish officials for its role in a massive bribery and money laundering scheme with government officials in Uzbekistan, according to documents filed with the Securities and Exchange Commission and in New York federal court on Sept. 21 (In the Matter of Telia Co. AB, No. 3-18195, SEC, and United States of America v. COSCOM LLC, No. 17-cr-581, S.D. N.Y.).



Government Allowed To Participate In Securities Suit Appeal Oral Arguments
WASHINGTON, D.C. - The U.S. Supreme Court on Oct. 10 granted Acting Solicitor General Noel Francisco's motion for leave to participate in oral arguments as amicus curiae and for divided argument in a securities class action lawsuit challenging a federal appellate court's ruling that Item 303 of Securities and Exchange Commission Regulation S-K creates a duty to disclose that is actionable under federal securities law (Leidos Inc., v. Indiana Public Retirement System, et al., No. 16-581, U.S. Sup.).



1st Circuit Denies Rehearing In Securities Suit Against Drug Company
BOSTON - The First Circuit U.S. Court of Appeals denied a petition for rehearing and rehearing en banc in a securities class action filed by a pharmaceutical company's shareholders who alleged that the company and certain of its executive officers misrepresented the likelihood of U.S. Food and Drug Administration (FDA) approval for its Duchenne muscular dystrophy treatment drug in violation of federal securities law (Mark A. Corban v. Sarepta Therapeutics Inc., et al., No. 15-2135, 1st Cir.).



Amex Shareholder Class Action Over Alleged Misrepresentations Dismissed
NEW YORK - A pension fund failed to show that a credit card company and certain of its executive officers violated federal securities laws by failing to disclose known trends and uncertainties and other adverse facts concerning its co-brand agreement negotiations with an international retailer, a federal judge in New York ruled Sept. 30 in dismissing the pension fund's amended class complaint for failure to plead any actionable misrepresentations or scienter (Plumbers and Steamfitters Local 137 Pension Fund v. American Express Co., et al., No. 15-5999, S.D. N.Y., 2017 U.S. Dist. LEXIS 162399).



Institutional Investor Appointed As Lead Plaintiff In Securities Class Action
BROOKLYN, N.Y. - A federal judge in New York on Oct. 6 ruled that an institutional investor has met all statutory requirements to serve as lead plaintiff in a securities class action against a Brazilian meat processor and seller and certain of its executive officers for alleged violations of federal securities laws in connection with an alleged bribery scheme with Brazilian government officials and others (Edmund Murphy III v. JBS S.A., et al., No. 17-3084, E.D. N.Y., 2017 U.S. Dist. LEXIS 166262).



Judge Allows Majority Of Claims To Survive In Securities Class Action
NEW YORK - A federal judge in New York on Sept. 19 substantially rejected a motion to dismiss filed by defendants in a securities class action lawsuit, ruling that the lead plaintiff in the action has properly pleaded a majority of its federal securities law claims (In re VEON Ltd. Securities Litigation, No. 15-8672, S.D. N.Y., 2017 U.S. Dist. LEXIS 152240).



Securities Claims Against Indian Film Company Were Forward-Looking, Judge Rules
NEW YORK - Lead plaintiffs have failed to show that an Indian film entertainment company and certain of its current and former executive officers and directors issued any material misrepresentations or omissions regarding its online film-streaming platform in violation of federal securities laws, a federal judge in New York ruled Sept. 22 in granting the defendants' motion to dismiss (In re Eros International Securities Litigation, No. 15-8956, S.D. N.Y., 2017 U.S. Dist. LEXIS 157978).



Securities Claims Allowed To Proceed In Wal-Mart Investor Class Action
FAYETTEVILLE, Ark. - A retirement system has standing to bring its federal securities law claims against Wal-Mart Stores Inc. and its CEO to recover for damages sustained by the company as part of its alleged attempt to cover up a bribery scheme at its Mexican subsidiary because investors, not the company, will recover the proceeds of any favorable judgment, a federal judge in Arkansas ruled Sept. 29 in denying the defendants' motion to dismiss (City of Pontiac General Employees Retirement System v. Wal-Mart Stores Inc., et al., No. 12-5162, W.D. Ark., 2017 U.S. Dist. LEXIS 160571).



Aegerion To Pay $35M To Settle Criminal, False Claims Cases, $4M To Settle SEC Action
BOSTON - Aegerion Pharmaceuticals Inc. will pay more than $35 million to resolve federal criminal misdemeanor charges and civil claims that it promoted its expensive cholesterol drug Juxtapid for off-label uses and violated patient privacy and kickback laws in the process, the U.S. Attorney's Office for the District of Massachusetts announced Sept. 22 (United States of America v. Aegerion Pharmaceuticals, Inc., No. 17-cr-10288, D. Mass.).



SEC Investigation Is 'Prior Or Pending' Claim; No Coverage, Federal Judge Says
NEW YORK - Ruling on dueling summary judgment motions, a New York federal judge held Sept. 25 that an investigation by the Securities Exchange Commission against a private investment firm insured is excluded from coverage because it was pending before the August 2011 inception of an excess directors and officers liability insurance policy (Patriarch Partners, LLC v. Axis Insurance Company, No. 16-2277, S.D. N.Y., 2017 U.S. Dist. LEXIS 155367).



Judge Grants Preliminary Approval Of $28.5M Settlement In IPO Suit
NEW YORK - A federal judge in New York on Oct. 11 granted preliminary approval of a $28.5 million securities class action settlement between shareholders and a global eCommerce company and others, ruling that the proposed settlement offer is fair, reasonable and adequate (In re Cnova N.V. Securities Litigation, No. 16-444, S.D. N.Y.).



Drug Company Reaches $13M Settlement With SEC Over Accounting Fraud Claims
WASHINGTON, D.C. - Medical manufacturer Alere Inc. will pay more than $13 million to settle claims with the Securities and Exchange Commission that it engaged in accounting fraud and made improper payments for foreign officials through its foreign subsidiaries in violation of federal securities laws, according to an SEC cease-and-desist order filed Sept. 28 (In the Matter of Alere Inc., No. 3-18228, SEC).



Judge: Investor In Securities Suit Failed To Plead Elements Of Federal Claims
NEW YORK - The lead plaintiff in a securities class action lawsuit against an engineered products manufacturer and certain of its current and former executive officers failed to plead any material misrepresentations or omissions or scienter in making their federal securities law claims, a federal judge in New York ruled Sept. 20 in granting the defendants' motion to dismiss (In re Eaton Corp. Securities Litigation, No. 16-5894, S.D. N.Y., 2017 U.S. Dist. LEXIS 153323).



6th Circuit Panel Denies Defendants' Petition For Review In Securities Suit
CINCINNATI - Defendants in a securities class action lawsuit against a financial holding company and certain of its executive officers have not shown a likelihood of success on the merits, a Sixth Circuit U.S. Court of Appeals panel ruled Sept. 18 in denying the defendants' petition for review of a federal district court's class certification order (In re BancorpSouth Inc., et al., No. 17-0508, 6th Cir., 2017 U.S. App. LEXIS 18044).



Investors Found To Have Pleaded Control-Person Liability In Securities Suit
HARTFORD, Conn. - Investors have properly pleaded each of their state and federal securities laws claims against the co-founder of a virtual currency mining company, a federal judge in Connecticut ruled Oct. 11 in denying the defendant's motion to dismiss all claims against him (Denis M. Audet, et al. v. Stuart A. Fraser, et al., No. 16-0940, D. Conn., 2017 U.S. Dist. LEXIS 167830).



Magistrate Judge Recommends That Dismissal Of Merger Deal Suit Be Denied
PORTLAND, Ore. - Lead plaintiffs in a securities class action against a company and its board of directors have shown that the defendants misrepresented the value of the company in a proxy statement for a proposed acquisition deal and acted with the requisite scienter in doing so, a federal magistrate judge ruled Oct. 3, recommending that the defendant's motion to dismiss be denied (NECA-IBEW Pension Trust Fund [The Decatur Plan], et al. v. Precision Castparts Corp., et al., No. 16-1756, D. Ore., 2017 U.S. LEXIS 165139).



Judge: Bank Has Right To Reimbursement From Insurer For Post-Merger Defense Costs
NEWARK, N.J. - A New Jersey federal judge on Sept. 18 found that a bank involved in a corporate merger has a right to reimbursement under a directors and officers liability insurance policy for its post-merger defense costs vis-a-vis the independent directors involved in a shareholder class action (BCB Bancorp, Inc., et al. v. Progressive Casualty Insurance Co., et al., No. 13-1261, D. N.J., 2017 U.S. Dist. LEXIS 151415).



Investors Failed To Cure Pleading Deficiencies In Securities Suit, Judge Rules
NEW YORK - Lead plaintiffs in a securities class action lawsuit against an asset management firm and certain of its executive officers and others have failed to cure any of the pleading deficiencies identified in a prior ruling on motions to dismiss federal securities law claims, a federal judge in New York ruled Sept. 29 in dismissing a second amended complaint with prejudice (Arthur Menaldi v. Och-Ziff Capital Management Group LLC, et al., No. 14-3251, S.D. N.Y.; 2017 U.S. Dist. LEXIS 163063).



High Court's Determination Of Standard Of Review In Derivative Action Sought
WASHINGTON, D.C. - Review of an Eighth Circuit U.S. Court of Appeals panel ruling in a shareholder derivative lawsuit brought on behalf of a medical device maker over the company's alleged involvement in an illegal off-market labeling scheme for one of its devices is necessary to cure a split among the circuit courts as to the proper standard of review for a shareholder derivative action based on a federal district court's dismissal of the action after the issuance of a special litigation committee's (SLC) report, an investor argues in a Sept. 8 petition for writ of certiorari filed in the U.S. Supreme Court (Charlotte Kokocinski, derivatively on behalf of Medtronic Inc., v. Arthur Collins Jr., et al., No. 17-375, U.S. Sup., 2017 U.S. S. Ct. Briefs 3478).



Review Of 9th Circuit's Application Of American Pipe In Securities Suit Sought
WASHINGTON, D.C. - U.S. Supreme Court review of a Ninth Circuit U.S. Court of Appeals' ruling that a securities class action lawsuit was timely filed is necessary because there is a split among the federal circuit courts as to the proper application of the American Pipe & Construction Co. v. Utah tolling doctrine, a company argues in a Sept. 21 petition for writ of certiorari filed in the Supreme Court (China Agritech Inc. v. Michael Resh, et al., No. 17-432, U.S. Sup.).



Parties Debate Whether Shkreli's E-Trade Funds Should Be Released
BROOKLYN, N.Y. - Former pharmaceutical company CEO and hedge fund manager Martin Shkreli and federal authorities recently debated whether the federal judge in New York overseeing Shkreli's securities fraud and conspiracy criminal proceedings should exonerate his bail and vacate a restraining order on his investment account in letter briefs filed in the federal court (United States of America v. Martin Shkreli, No. 15-637, E.D. N.Y.).



Cloud-Based Insurance Administrator Hit With Securities Class Actions
Between Sept. 11 and Sept. 21, three shareholders filed separate but related securities class action lawsuits against a developer and administrator of cloud-based individual and family insurance plans and certain of its executive officers and directors in various federal courts.



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.).