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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.



High Court Finds That SEC Disgorgement Claims Must Be Brought Within 5 Years
WASHINGTON, D.C. - Because they operate as penalties under federal law, disgorgement claims in Securities and Exchange Commission enforcement actions must be brought within five years of the date in which the claim accrued, the U.S. Supreme Court ruled June 5 in a unanimous opinion (Charles R. Kokesh v. Securities and Exchange Commission, No. 16-529, U.S. Sup.).



Panel Affirms Dismissal Of Securities Class Action For Failure To Plead Scienter
BOSTON - A federal district court judge did not err in dismissing a shareholder class action lawsuit because the lead plaintiff failed to plead scienter in making its federal securities law claims against a drug maker and certain of its executive officers, a First Circuit U.S. Court of Appeals panel ruled May 12 in affirming the lower court's decision (In re Biogen Inc. Securities Litigation, No. 16-1976, 1st Cir., 2017 U.S. App. LEXIS 8475).



Panel: Judge Did Not Engage In Prohibited Fact Finding In Securities Suit
SAN FRANCISCO - A federal judge did not err in dismissing a lead plaintiff's second amended complaint in a securities class action lawsuit against LifeLock Inc. and certain of its executive officers because the lead plaintiff failed to plead any material misrepresentations or omissions in pleading his federal securities law claims, a Ninth Circuit U.S. Court of Appeals panel ruled May 11 in affirming (In re LifeLock Inc. Securities Litigation, No. 15-16885, 9th Cir., 2017 U.S. Dist. LEXIS 8386).



Panel Affirms Dismissal Of Securities Claims For Failure To Plead Scienter
SEATTLE - A federal judge did not err in dismissing a securities class action against a financial institution and certain of its former executive officers because a shareholder failed to show that the defendants acted with the requisite scienter and failed to plead falsity in making its federal securities law claims, a Ninth Circuit U.S. Court of Appeals panel ruled in affirming on May 22 (City of Roseville Employees' Retirement System v. Sterling Financial Corp., No. 14-35902, 9th Cir., 2017 U.S. App. LEXIS 8893).



Judge: Pension Fund Cured Scienter Pleading Deficiency Against Company, CEO
SAN FRANCISCO - In granting in part and denying in part a motion to dismiss, a federal judge in California on May 17 held that a pension fund has cured its pleading deficiencies and properly shown that a semiconductor producer and its CEO acted with the requisite scienter in misrepresenting the company's key business metrics as required under federal securities laws (Daniel Luna v. Marvell Technology Group Ltd., et al., No. 15-5447, N.D. Calif., 2017 U.S. Dist. LEXIS 75262).



Judge Dismisses Securities Class Action Against Tech Company With Prejudice
BOSTON - A federal judge on June 6 granted a motion to dismiss filed by a software company and certain of its executive officers, ruling that a lead plaintiff failed to plead any material misrepresentations or scienter in making his federal securities law claims (Richard Sousa v. Sonus Networks Inc., et al., No. 16-10657, D. Mass, 2017 U.S. Dist. LEXIS 87375).



Shareholders Pleaded Scienter In Securities Suit Against Drug Maker, Judge Rules
SEATTLE - Shareholders in a securities class action lawsuit against a developmental pharmaceutical company and certain of its executive offices have properly pleaded a material misrepresentation at this point in the litigation and scienter in alleging that the defendants misrepresented the clinical trial results for the company's new cancer treatment drug in violation of federal securities laws, a federal judge in Washington ruled June 14 (In re Juno Therapeutics Inc., No. 16-1069, W.D. Wash., 2017 U.S. Dist. LEXIS 91608).



Judge: Defendants' Alleged Misrepresentations Not Actionable In Securities Suit
NEWARK, N.J. - Lead plaintiffs in a securities class action lawsuit against a pharmaceutical company and its CEO have failed to plead any material misstatements or omissions in arguing that the defendants misrepresented that the company's new drug was expected to gain U.S. Food and Drug Administration approval in violation of federal securities laws, a federal judge in New Jersey ruled May 19 in granting the defendants' motion to dismiss (Blake Bauer v. Eagle Pharmaceuticals Inc., et al., No. 16-3091, D. N.J., 2017 U.S. Dist. LEXIS 76247).



Panel Affirms Court's Dismissal Of Securities Claims Against Drugmaker
PHILADELPHIA - A federal judge did not err in dismissing a securities class action against a pharmaceutical company and certain of its executive officers because a shareholder failed to show that the defendants issued any actionable misstatements or omissions regarding the company's new high triglyceride (TG) levels treatment drug, a Third Circuit U.S. Court of Appeals panel ruled May 23 in affirming (In re Amarin Corp. PLC Securities Litigation, No. 16-2640, 3rd Cir., 2017 U.S. App. LEXIS 8970).



For-Profit College To Pay $2.25M To Settle Securities Fraud Claims
LOS ANGELES - A for-profit secondary education company and certain of its current and former executive officers have agreed to pay $2.25 million to settle claims that the company concealed its failure to comply with federal student loan funds usage requirements in violation of federal securities laws, according to documents filed in California federal court on May 26 (Jimmy Elias Karam v. Corinthian Colleges Inc., et al., No. 10-6523, C.D. Calif.).



Judge Appoints Lead Plaintiff In Consolidated Securities Suit Against Drug Maker
NEW YORK - A federal judge in New York on May 31 appointed a shareholder as lead plaintiff in a consolidated securities class action lawsuit against a drug maker and certain of its current and former executive officers, ruling that the shareholder has met all statutory requirements to serve as lead plaintiff (In re Insys Therapeutics Inc. Securities Litigation, No. 17-1954, S.D. N.Y.).



Investor Named Lead Plaintiff In Securities Suit Over Public Offering Misstatements
BROOKLYN, N.Y. - A federal judge in New York on June 6 appointed a shareholder as lead plaintiff in a securities class action lawsuit against an industrial biotechnology company and certain of its current and former executive officers, ruling that the shareholder met all statutory requirements to serve in the position (Donald Chu v. BioAmber Inc., et al., No. 17-1531, E.D. N.Y.).



Investor Group Named Lead Plaintiff In Federal Securities Class Action
NEW YORK - An investor group was appointed as lead plaintiff in a securities class action lawsuit against a pet therapeutics company and certain of its executive officers on June 6 after a federal judge in New York ruled that the group met all statutory requirements to serve in the position (In re Aratana Therapeutics Inc. Securities Litigation, No 17-0880, S.D. N.Y., 2017 U.S. Dist. LEXIS 87351).



Judge Substantially Denies Motion To Dismiss In IPO Stock Drop Suit
NEW YORK - A pension fund has properly pleaded a majority of its federal securities law claims alleging that a company, certain of its officers and directors and the underwriters of its initial public offering (IPO) concealed from investors that the company was expected to see a tax increase that would substantially affect revenue, a federal judge in New York ruled May 23 in granting in part and denying in part the defendants' motion to dismiss (Yi Xiang, et al. v. Inovalon Holdings Inc., et al., No. 16-4923, S.D. N.Y., 2017 U.S. Dist. LEXIS 78207).



9th Circuit Panel Upholds Summary Judgment Ruling In SEC Enforcement Action
SAN FRANCISCO - A federal district court did not err in granting the Securities and Exchange Commission's motion for summary judgment on the issue of defendants' liability for their roles in orchestrating a more than $800 million Ponzi scheme, a Ninth Circuit U.S. Court of Appeals panel ruled June 7 in affirming the District Court's ruling (Securities and Exchange Commission v. Edwin Yoshihiro Fujinaga, et al., No. 15-16026, 9th Cir., 2017 U.S. App. LEXIS 10130).



9th Circuit: Claims Subject To American Pipe Tolling In Securities Class Action
LOS ANGELES - A federal district court erred in holding that claims in a securities class action lawsuit against a Chinese agricultural products manufacturer and certain of its officers and directors were time-barred because the statute of limitations was tolled pursuant to Supreme Court precedent in American Pipe & Construction Co. v. Utah and Crown, Cork & Seal Co. v. Parker, a Ninth Circuit U.S. Court of Appeals panel ruled May 24 in reversing and remanding (Michael H. Resh, et al. v. China Agritech Inc., et al., No. 15-55432, 9th Cir., 2017 U.S. App. LEXIS 9029).



Judge Substantially Denies Motion To Dismiss In Securities Class Action
HOUSTON - A federal judge in Texas on June 15 issued a pair of decisions in a securities class action lawsuit against a mining company and certain of its executive officers and directors and others, ruling that dismissal of shareholders' insider trading claim is warranted with regard to a number of defendants and certifying the shareholder class and appointing class representatives (In re Cobalt International Energy Inc. Securities Litigation, No. 14-3428, S.D. Texas, 2017 U.S. Dist. LEXIS 91940 and 2017 U.S. Dist. LEXIS 91938).



Judge: Investor Failed To Plead Demand Futility In Shareholder Derivative Suit
DENVER - An investor has failed to plead demand futility in arguing that the board of directors for a Mexican food restaurant chain breached their fiduciary duty in failing to provide the necessary oversight of the company, leading to a massive foodborne illness outbreak, a federal judge in Colorado ruled June 7 in granting the defendants' motion to dismiss (Sean Gubricky v. Steve Ells, et al., No. 16-2011, D. Colo.).



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).



Grand Jury Indicts Texas Senator, Others For Alleged Fracking Sand Fraud Scheme
SAN ANTONIO - The U.S. government on May 16 filed an indictment against Texas state Sen. Carlos I. Uresti and two other individuals, alleging that they engaged in a scheme to defraud investors, commit wire fraud and launder money related to an alleged Ponzi scheme involving a fracking sand company the defendants operated (United States of America v. Carlos I. Uresti, et al., No. SA-17-CR, W.D. Texas, San Antonio Div.).



Report: 2016 Securities Class Action Settlements Among Top 100 All-Time
NEW YORK - A total of 13 settlements in 2016 were large enough to be added to the top 100 list of securities class action settlements, including one to the top 10 all-time, in terms of total settlement amount, according to a report issued by corporate governance solutions provider Institutional Shareholder Services Inc. (ISS) Securities Class Action Services Inc. on June 13.



1st Circuit Asked To Decide Whether Securities Claims Were Properly Pleaded
BOSTON - Parties in a securities class action lawsuit against a drug company and certain of its current and former executive officers asked the First Circuit U.S. Court of Appeals recently to determine whether a federal judge in Massachusetts erred in dismissing the shareholders' federal securities law claims for failure to plead scienter (Morad Ghodooshim, et al. v. Sarepta Therapeutics Inc., et al., No. 17-1139, 1st Cir.).



Parties Debate Whether Scienter Was Properly Pleaded In Securities Suit
ALEXANDRIA, Va. - Parties in a securities class action lawsuit against an aerospace and defense company and certain of its current and former executive officers and directors asked a federal judge in Virginia recently to determine whether shareholders have properly pleaded scienter in making their federal securities law claims (Steven Knurr v. Orbital ATK Inc., et al., No. 16-1031, E.D. Va.).



Investors Failed To Plead Elements Of Securities Law Claims, Defendants Say
NEW YORK - Lead plaintiffs in a securities class action lawsuit against a drug maker and certain of its current and former executive officers have failed to plead their federal securities law claims against the defendants because they have failed to plead any material misrepresentation, scienter or loss causation, the defendants argue in a May 30 motion to dismiss filed in New York federal court (In re Mylan N.V. Securities Litigation, No. 16-7926, S.D. N.Y.).



Elements Of Securities Law Claim Properly Pleaded, GoPro Investor Says
OAKLAND, Calif. - Dismissal of an amended securities class action complaint is not proper because the lead plaintiff in the action has properly pleaded an actionable misrepresentation or omission, scienter and loss causation, the lead plaintiff argues in a May 15 opposition brief (Anton Bielousov v. GoPro Inc., et al., No. 16-6654, N.D. Calif.).



Investor Sues Software Company's Directors Over Proposed Merger Deal
SAN FRANCISCO - A software company, its CEO and its board of directors filed documents in connection with a proposed merger deal that lacked adequate financial information necessary for shareholders to make an informed decision on the proposed deal, a shareholder argues in a May 24 securities class action complaint filed in California federal court (Bryan Ward v. Jive Software Inc., et al., No. 17-2993, N.D. Calif.).



Panera Bread Investor Sues Company, Board Over Proposed Merger Deal
WILMINGTON, Del. - A shareholder sued restaurant chain Panera Bread Co. and its board of directors in Delaware federal court on June 7, alleging that the defendants issued a proxy statement in connection with a proposed merger deal that contains information insufficient for shareholders to properly consider the proposed deal in violation of federal securities laws (Lawrence Phillips v. Panera Bread Co., et al., No. 17-0697, D. Del.).



Energy, Mining, Steel Cos. All Named Defendants In Latest Complaint Filings
Shareholder class action lawsuits naming energy and mining companies as well as drug makers and medical device makers as defendants highlight recently filed securities class action complaints.



NCUA Recovers $445M From UBS To Settle MBS Claims
ALEXANDRIA, Va. - UBS Securities LLC will pay $445 million to the National Credit Union Administration (NCUA) to settle claims that UBS sold residential mortgage-backed securities (MBS) to two failed credit unions in violation of federal securities laws, according to an NCUA press release issued May 1 (National Credit Union Administration Board v. UBS Securities LLC, No. 12-2591, D. Kan.).



Credit Suisse Agrees To Pay $400M To Settle NCUA MBS Claims
KANSAS CITY, Kan. - Credit Suisse Securities (USA) LLC will pay $400 million to settle claims with the National Credit Union Administration (NCUA) that is mispresented the investment quality of residential mortgage-backed securities (MBS) it underwrote and sold to three failed credit unions, according to an NCUA press release issued May 3 (National Credit Union Administration Board v. Credit Suisse Securities [USA] LLC, et al., No. 12-2648, D. Kan.).



Judge Grants Preliminary Approval Of $165M Settlement In MBS Suit
NEW YORK - A federal judge in New York on May 9 granted preliminary approval of a $165 million securities class action settlement between shareholders and certain underwriters of mortgage-backed securities (MBS) alleged to have taken part in a fraudulent scheme to misrepresent the underwriting standards they used in the offering documents for a series of MBS (New Jersey Health Fund v. Royal Bank of Scotland Group PLC, et al., No. 08-5310, S.D. N.Y.).



Supreme Court Hears Oral Argument In American Pipe Tolling Challenge
WASHINGTON, D.C. - The U.S. Supreme Court on April 17 heard oral arguments in an appeal of a Second Circuit U.S. Court of Appeals ruling affirming that shareholders that filed a securities class action lawsuit after opting out of settlement class against the same defendants were barred from doing so as their claims were outside the statute of repose (California Public Employees' Retirement System v. Moody Investors Service Inc., et al., No. 16-373, U.S. Sup.).



High Court Hears Oral Arguments In Appeal Of SEC Enforcement Action Ruling
WASHINGTON, D.C. - The U.S. Supreme Court on April 18 heard oral arguments in an appeal of a 10th Circuit U.S. Court of Appeals ruling that determined that disgorgement is not a penalty or forfeiture pursuant to 28 U.S. Code Section 2462, U.S.C. 2462, and thus, is not subject to a five-year statute of limitations (Charles R. Kokesh v. Securities and Exchange Commission, No. 16-529, U.S. Sup.).



Barclays Agrees To Pay More Than $97M To Settle SEC Enforcement Action
WASHINGTON, D.C. - Barclays Capital Inc. will pay more than $97 million to settle claims filed by the Securities and Exchange Commission alleging that the broker-dealer overcharged investors from September 2010 to March 2015 for services not provided, according to an order instituting cease-and-desist proceedings filed May 10 by the SEC (In the Matter of Barclays Capital Inc., No 3-17978, SEC).



Majority Of 10th Circuit Judges Denies Rehearing In SEC ALJ Challenge Suit
DENVER - A majority of the 10th Circuit U.S. Court of Appeals on May 3 denied the Securities and Exchange Commission's petition for rehearing and rehearing en banc, rejecting the commission's argument that a 10th Circuit panel erred in holding that the SEC's administrative law judges (ALJs) are inferior officers and subject to appointment pursuant to the appointments clause of the U.S. Constitution (David F. Bandimere v. Securities and Exchange Commission, No. 15-9586, 10th Cir.).



Harman International To Pay More Than $28M To Settle Securities Class Action Suit
WASHINGTON, D.C. - Audio products and electronic systems manufacturer Harman International Industries Inc. will pay more than $28 million to settle claims that it and certain of its current and former executive officers concealed issues with the company's line of personal navigation devices (PND) in violation of federal securities laws, according to a motion for preliminary approval of settlement filed April 19 in the District of Columbia federal court (In re Harman International Industries Inc. Securities Litigation, No. 07-1757, D. D.C.).



Investor Failed To Plead Securities Claims In GoPro Class Action, Judge Rules
SAN FRANCISCO - The lead plaintiff in a securities class action lawsuit against GoPro Inc. and certain of its current and former executive officers failed to plead any material misrepresentations or omissions or scienter in making his federal securities laws claims, a federal judge in California ruled May 1 in granting the defendants' motion to dismiss (Joseph Bodri v. GoPro Inc., et al., No. 16-0232, N.D. Calif.).



Parties Seek Joint Stay In Securities Suit To Negotiate $97.5M Settlement
TYLER, Texas - Shareholders and defendants in a securities class action lawsuit against retailer JCPenney Co. Inc. and certain of its executive officers have provisionally agreed to a $97.5 million settlement on claims that the defendants misrepresented the company's business and financial condition in violation of federal securities laws, according to a joint motion to stay all deadlines and notice of settlement filed May 5 in a Texas federal court (Alan B. Marcus v. JCPenney Company Inc., et al., No. 13-0736, E.D. Texas).



Judge: Investor Pleaded Actionable Misstatements In Securities Class Action
SAN DIEGO - Defendants in a securities class action lawsuit against a drug company and certain of its current and former executive officers have failed to show that the lead plaintiff failed to plead any material misrepresentations or omissions in arguing that the defendants concealed adverse clinical test results for its development of a diet drug in violation of federal securities laws, a federal judge in California ruled April 28 in denying the defendants' motion to dismiss (Todd Schueneman, et al. v. Arena Pharmaceuticals Inc., et al., No. 10-1959, S.D. Calif., 2017 U.S. Dist. LEXIS 65275).



Judge Rejects Investor's Misrepresentation, Scienter Claims In Securities Suit
SAN JOSE, Calif. - A lead plaintiff in a securities class action lawsuit failed to state any actionable misstatements or omissions and failed to plead scienter in claiming that a network infrastructure equipment developer and certain of its former executive officers issued misrepresentations regarding the company's business and financial condition in violation of federal securities laws, a federal judge in California ruled April 27 in granting the defendants' motion to dismiss (Jui-Yang Hong, et al. v. Extreme Networks Inc., et al., No. 15-4883, N.D. Calif., 2017 U.S. Dist. LEXIS 64297).



Judge: Investors Partially Pleaded Scienter In Securities Suit Against Lender
AUSTIN, Texas - A federal judge in Texas on May 5 partially dismissed federal securities law claims against a lender and one of its former executive officers, ruling that lead plaintiffs have only partially pleaded scienter in making their claims (Wu Winfred Huang, et al. v. EZCORP Inc., et al., No. 15-0608, W.D. Texas, 2017 U.S. Dist. LEXIS 69581).



Investor Pleaded Scienter, Loss Causation In Securities Lawsuit, Judge Rules
SAN JOSE, Calif. - A shareholder has shown that defendants in a securities class action lawsuit acted with deliberate recklessness in misrepresenting a company's business and financial condition in violation of federal securities laws, a federal judge in California ruled May 1 in denying the defendants' motion to dismiss (In re Finisar Corp. Securities Litigation, No. 11-1252, N.D. Calif., 2017 U.S. Dist. LEXIS 66229).



Panel Affirms Court's Dismissal Of Securities Suit For Failure To Plead Falsity
SAN FRANCISCO - The lead plaintiff in a securities class action lawsuit against a tech company and certain of its current and former executive officers 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, a Ninth Circuit U.S. Court of Appeals panel ruled May 5 in affirming a lower court's dismissal ruling (City of Dearborn Heights Act 345 Police & Fire Retirement System v. Align Technology Inc., et al., No. 14-16814, 9th Cir., 2017 U.S. App. LEXIS 8005).



Panel: Class Certification Motion Was Not Filed Too Late In Securities Suit
NEW YORK - A federal district court erred in denying a lead plaintiff's motion for class certification in a securities class action lawsuit as moot because the motion was not filed too late and the defendants were not prejudiced by the motion, a Second Circuit U.S. Court of Appeals panel ruled April 12 in affirming in part, reversing in part and remanding (Acticon AG v. China North East Petroleum Holdings Ltd., et al., No. 16-2351, 2nd Cir., 2017 U.S. App. LEXIS 6238).



Partial Stay Of Notice Recommended In Big Lots Securities Class Action
COLUMBUS, Ohio - A federal magistrate judge in Ohio on May 4 recommended that a motion to stay dissemination of class notice in a securities class action lawsuit against broad line closeout retailer Big Lots Inc. and certain of its executive officers be partially granted, ruling that class representative should prepare the notice but withhold distributing it until a federal circuit court has had a chance to resolve a petition for permissive leave to appeal (Alan Willis v. Big Lots Inc., et al., No. 12-0604, S.D. Ohio, 2017 U.S. Dist. LEXIS 68233).



Investor Failed To Cure Pleading Issues In LeapFrog Securities Suit, Judge Rules
SAN FRANCISCO - An investor failed to plead falsity or scienter in alleging that LeapFrog Enterprises Inc. and members of its board of directors misrepresented the company's business and financial condition in documents released as part of a proposed merger deal, a federal judge in California ruled May 9 in granting the defendants' motion to dismiss a second amended complaint without leave to amend (Pete J. Manger v. LeapFrog Enterprises Inc., et al., No. 16-1161, N.D. Calif.; 2017 U.S. Dist. LEXIS 70893).



Federal Judge Denies Securities Broker's Motion To Bar Expert Testimony
WEST PALM BEACH, Fla. - An expert is qualified to testify regarding a rule under Financial Regulatory Authority Inc. (FINRA), a Florida federal judge ruled April 14, denying a motion to exclude filed by a securities broker-dealer (UBS Financial Services Inc. v. Bounty Gain Enterprises Inc., No. 14-81603, S.D. Fla., 2017 U.S. Dist. LEXIS 57502).



Banned Trader Seeks 2nd Circuit Overturn Of Lifetime Ban
NEW YORK - A Securities and Exchange Commission ruling instituting a lifetime trading ban and $82,500 civil monetary penalty on a former Barclays Bank trader should be set aside due to "structural errors in the composition and conduct of the adjudication," the former trader argues in an April 17 petitioner brief filed in the Second Circuit U.S. Court of Appeals (Thomas C. Gonnella v. Securities and Exchange Commission, No. 16-3433, 2nd Cir.).



Defendants: Investor Hasn't Pleaded Actionable Misstatements In Securities Suit
OAKLAND, Calif. - The lead plaintiff in a securities class action lawsuit against GoPro Inc. and certain of its executive officers has failed to plead any particularized facts showing that the defendants knew their alleged misrepresentations were false when made in violation of federal securities laws, the defendants argue in an April 13 motion to dismiss (Anton Bielousov v. GoPro Inc, et al., No. 16-6654, N.D. Calif.).



Defendants: Investors Fail To Show That Statements Were False, Misleading
BURLINGTON, Vt. - Lead plaintiffs in a securities class action lawsuit against specialty coffee and coffee-related products manufacturer Green Mountain Coffee Roasters Inc. (GMCR) have failed to plead any material misrepresentation, scienter or loss causation in alleging that GMCR and certain of its executive officers misrepresented the company's business growth in violation of federal securities laws, the defendants argue in a May 1 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.).



Shareholder Hasn't Shown Any Breach Of Fiduciary Duty, Defendants Argue
SHERMAN, Texas - Dismissal of a shareholder derivative lawsuit against certain current and former executive officers and directors of Rent-A-Center Inc. is proper because the shareholder failed to show that the defendants breached their fiduciary duty in their communications regarding the status of the company's new point-of-service (POS) system, the defendants argue in an April 25 motion to dismiss filed in Texas federal court (Arnaud van der Gracht de Rommerswael v. Mark E. Speese, et al., No. 17-0227, E.D. Texas).



Chinese Coal Company Failed To Disclose Asset Impairment, Investor Says
NEWARK, N.J. - A Chinese vertically integrated coal and coke producer and two of its executive officers issued a series of misstatements and omissions in Securities and Exchange Commission filings concealing the company's true business and financial condition in violation of federal securities laws, a shareholder argues in a May 8 securities class action complaint filed in New Jersey federal court (Jarrod Nasin v. Hongli Clean Energy Technologies Corp., et al., No. 17-3244, D. N.J.).



Investor Sues Emergency Room Operator Over Alleged Misrepresentations
TYLER, Texas - A shareholder filed a securities class action lawsuit on April 27 in Texas federal court, alleging that an operator of a network of free-standing emergency rooms and certain of its current and former executive officers and directors misrepresented the company's business condition in violation of federal securities laws (Sascha Troll v. Adeptus Health Inc., No. 17-0241, E.D. Texas).



Oil, Coal, Trucking Companies Named As Defendants In Latest Complaint Filings
Shareholder class action lawsuits over proposed merger deals and misrepresentation class actions filed by investors of oil and coal companies, as well as a trucking company and a mobile solutions provider highlight recent securities complaint filings.