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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.



Preliminary Approval Of $100M Settlement In Halliburton Securities Suit Granted
DALLAS - A Texas federal judge on March 31 granted preliminary approval of a $100 million securities class action settlement between investors and Halliburton Co. and its CEO who were alleged to have issued certain misrepresentations regarding the company's asbestos litigation liability, its financial condition and the benefits of a merger deal in violation of federal securities laws (The Erica P. John Fund Inc. v. Halliburton Co., et al., No. 02-1152, N.D. Texas).



Judge Grants Preliminary Approval Of $10.5M Settlement In Stock Drop Suit
HOUSTON - A federal judge in Texas on April 10 granted preliminary approval of a $10.5 million settlement between investors and one of the country's largest industrial, engineering and construction companies in a securities class action lawsuit alleging that the company and certain of its current and former senior officers misrepresented the company's business and financial condition in violation of federal securities laws (In re KBR Inc. Securities Litigation, No. 14-1287, S.D. Texas).



Ruby Tuesday To Pay $5M To Settle Claims In Stock Drop Suit
NASHVILLE, Tenn. - Restaurant chain Ruby Tuesday Inc. will pay $5 million to settle claims that it and certain of its executive officers and directors mispresented the company's brand repositioning and concealed the poor performance of one of its chains of restaurants in violation of federal securities laws, according to a motion for stipulation of settlement filed March 29 in Tennessee federal court (Dennis Krystek v. Ruby Tuesday Inc., et al., No. 14-1119, M.D. Tenn.).



Judge: Lead Plaintiff In Securities Suit Failed To Cure Pleading Deficiencies
NEW YORK - The lead plaintiff in a securities class action lawsuit against a steel processing company and certain of its current and former executive officers and directors have failed to show that the defendants issued any material misrepresentations regarding the company's financial condition in violation of federal securities laws, a federal judge in New York ruled March 29 in dismissing the lead plaintiff's third amended complaint with prejudice (Aram J. Pehlivanian v. China Gerui Advanced Materials Group Ltd., et al., No. 14-9443, S.D. N.Y., 2017 U.S. Dist. LEXIS 46852).



Judge: Investors Failed To Properly Service Drug Company's Director
NEWARK, N.J. - Dismissal of claims against a pharmaceutical company's director in a securities class action lawsuit is proper because lead plaintiffs failed to serve the director within the statutorily required 120-time period and failed to show that an extension of that time period is warranted, a federal judge in New Jersey ruled March 31 in granting the director's motion to dismiss (Robin J. Dartell, et al. v. Tibet Pharmaceuticals Inc., et al., No. 14-3620, D. N.J., 2017 U.S. Dist. LEXIS 48915).



Lead Plaintiffs Appointed In Securities Suit Against Medical Equipment Developer
SOUTH BEND, Ind. - A group of shareholders have met all statutory requirements to serve as lead plaintiffs in a securities class action lawsuit against a medical equipment developer and certain of its executive officers, a federal judge in New Jersey ruled April 3 in granting their motion for appointment as lead plaintiffs (Rajesh M. Shah v. Zimmer Biomet Holdings Inc., et al., No. 16-0815, N.D. Ind., 2017 U.S. LEXIS 50236).



U.S. Supreme Court To Hear Appeal In Securities Class Action Lawsuit
WASHINGTON, D.C. - The U.S. Supreme Court on March 27 agreed to hear a defense technology company's appeal of a Second Circuit U.S. Court of Appeals' ruling to determine if there is a split among the circuits regarding whether a duty to disclose is created by Item 303 of Securities and Exchange Commission Regulation S-K that is actionable under Section 10(b) of the Securities Exchange Act of 1934 (Leidos Inc., v. Indiana Public Retirement System, et al., No. 16-581, U.S. Sup.).



Judge: Investors Failed To Plead Scienter Against Defendant In Securities Suit
NEW YORK - A federal judge in New York on March 25 partially granted a motion to dismiss filed by defendants in a securities class action lawsuit, ruling that lead plaintiffs failed to show that one of the defendants acted with the requisite scienter in making their federal securities law claims (In re Eletrobras Securities Litigation, No. 15-5754, S.D. N.Y., 2017 U.S. Dist. LEXIS 44350).



Panel Upholds Dismissal Of Securities Claims For Failure To Plead Scienter
BOSTON - Lead plaintiffs in a securities class action lawsuit against a pharmaceutical company and its CEO failed to plead allegations giving rise to a strong inference of scienter in making their federal securities law claims, a First Circuit U.S. Court of Appeals panel ruled April 7 in affirming a lower court's dismissal ruling (Terry Brennan, et al. v. Zafgen Inc., et al., No. 16-2057, 1st Cir., 2017 U.S. App. LEXIS 6052).



Investors' Scienter Claims Fall Short In Securities Lawsuit, Judge Rules
SAN DIEGO - Shareholders in a securities class action lawsuit against a for-profit higher education provider and certain of its current and former executive officers have failed to plead scienter in making their federal securities law claims, a federal judge in California ruled April 5 in dismissing a second amended complaint (Nelda Zamir v. Bridgepoint Education Inc., et al., No. 15-408, S.D. Calif., 2017 U.S. Dist. LEXIS 52573).



Investors Failed To Plead Motive, Opportunity In Pleading Scienter, Judge Rules
NEW YORK - Shareholders in a securities class action lawsuit have failed to plead any elements of scienter in making their federal securities law claims against a supplier of lightweighting and noise, vibration and harshness solutions for personal and commercial vehicles and certain of the executive officers, a federal judge in New York ruled March 23 in granting the defendants' motion to dismiss (Raymond Thomas, et al. v. Shiloh Industries Inc., et al., No. 15-7449, S.D. N.Y., 2017 U.S. Dist. LEXIS 42512).



Judge Certifies Class In Big Lots Securities Class Action Lawsuit
COLUMBUS, Ohio - Class certification in a shareholder lawsuit against a broad line closeout retailer and certain of its executive officers is proper because the lead plaintiff in the action has met all statutory requirements needed for certification, a federal judge in Ohio ruled March 17 (Alan Willis v. Big Lots Inc., et al., No. 12-0604, S.D. Ohio, 2017 U.S. Dist. LEXIS 38926).



Judge Certifies Class In Securities Class Action Against Drug Maker, Others
SAN DIEGO - A federal judge in California on March 22 granted class certification in a securities class action lawsuit and appointed shareholders as class representatives and two law firms as class counsel, rejecting arguments by defendants that the shareholders and their counsel would not be able to adequately represent the class (Brad Mauss v. NuVasive Inc., et al., No. 13-2005, S.D. Calif., 2017 U.S. Dist. LEXIS 41894).



Judge Rejects Defendant's Motion For Reconsideration In Securities Fraud Suit
CENTRAL ISLIP, N.Y. - Ruling that a defendant has failed to provide any new evidence to support his continued motions for reconsideration in a securities fraud lawsuit, a federal judge on April 6 denied the defendant's motion for reconsideration of a previous order denying his request for a stay of judgment, cautioning the defendant that continued motions to reconsider using the same arguments that have already been denied is an "abuse of the judicial process" (Securities and Exchange Commission v. iShopNoMarkup.com, et al., No. 04-4057, E.D. N.Y.; 2017 U.S. Dist. LEXIS 53116).



Judge: SEC Proxy Statement For Acquisition Deal Was Misleading, Material
PORTLAND, Ore. - Dismissal of a securities class action against a company and its board of directors for allegedly omitting key information in the Securities and Exchange Commission proxy statement for a proposed acquisition deal in an effort to have the company's stock sell for a lesser price is not proper because lead plaintiffs have shown that the proxy statement was both misleading and material, a federal judge in Oregon ruled March 20 in denying the defendants' motion to dismiss (Elia Azar, et al. v. Blount International Inc., et al., No. 16-483, D. Ore., 2017 U.S. Dist. LEXIS 39493).



Parties Debate Constitutionality Of SEC Judges In D.C. Circuit
WASHINGTON, D.C. - Securities and Exchange Commission administrative law judges (ALJs) are not officers who need to be appointed pursuant to the appointments clause of the U.S. Constitution, the SEC says in a March 31 opposition brief filed in the District of Columbia Circuit U.S. Court of Appeals (Raymond J. Lucia Companies Inc., et al. v. Securities and Exchange Commission, No. 15-1345, D.C. Cir.).



Defendant In Insider- Trading Suit Seeks Smaller Penalty Amount
ATLANTA - The Securities and Exchange Commission has sought an excessive amount of civil penalty, and a federal judge should require a defendant in an insider-trading lawsuit to pay only a portion of that amount, the defendant argues in an April 7 opposition brief filed in Georgia federal court (Securities and Exchange Commission v. Thomas D. Melvin Jr., et al., No. 12-2984, N.D. Ga.).



Citibank Moves For Summary Judgment In Securities Lawsuit
NEW YORK - Trustees cannot be held liable for not pursuing enforcement actions against a party that is deemed to be bankrupt at the time the trustee discovers facts giving rise to a claim, a trustee argues in an April 7 motion for summary judgment filed in a shareholder derivative and securities class action lawsuit filed in New York federal court (Fixed Income Shares: Series M, et al. v. Citibank N.A., et al., No. 14-9373, S.D. N.Y.).



Drug Company Hit With Shareholder Suit Over Proposed Merger Deal
BOSTON - A pharmaceutical company and its board of directors issued a proxy statement in connection with a proposed merger deal that contained several misrepresentations and omitted important facts surrounding the proposed transaction in violation of federal securities laws, an investor argues in an April 11 securities class action complaint filed in Massachusetts federal court (Stephen Bushansky v. Tokai Pharmaceuticals Inc., et al., No. 17-10621, D. Mass.).



Suits Over Merger Deals, Stock Drops Are Highlights Of Latest Complaint Filings
Shareholder class action lawsuits over proposed merger deals, and misrepresentations class actions filed by investors of a transportation company, an investment firm and a mining company are highlights of recent securities complaint filings.



Banks Agree To Pay $165M To Settle Mortgage-Backed Securities Claims
NEW YORK - Underwriters Royal Bank of Scotland Securities Inc., Deutsche Bank Securities Inc. and Wells Fargo Advisors LLC on March 15 agreed to pay a combined $165 million to settle claims that they took part in a fraudulent scheme to misrepresent the underwriting standards they used in the offering documents for a series of mortgage-backed securities (MBS) (New Jersey Health Fund v. Royal Bank of Scotland Group PLC, et al., No. 08-5310, S.D. N.Y.).



Shareholder's Securities Law Claim Sufficiently Pleaded, Judge Rules
WILMINGTON, Del. - Defendants in a securities class action lawsuit over a proposed merger deal have failed to show that a shareholder did not provide sufficient evidence to support his claims that the defendants issued a series of misrepresentations and omissions in a proxy and registration statement for the deal in violation of federal securities laws, a federal judge in Delaware ruled March 13 in denying the defendants' motion to dismiss (Robert Hurwitz v. LRR Energy LP, et al., No. 15-711, D. Del., 2017 U.S. Dist. LEXIS 35108).



Federal Judge Trims Claims In LeapFrog Securities Class Action
SAN FRANCISCO - A lead plaintiff in a securities class action has failed to show that a developer of educational entertainment for children and two of its executive officers acted with scienter in failing to report goodwill impairment for the second quarter of 2015, but the lead plaintiff has pleaded scienter regarding the defendants' failure to take certain write-offs in the third quarter of the fiscal year, a federal judge in California ruled Feb. 24 in granting in part and denying in part the defendants' motion to dismiss (In re LeapFrog Enterprises Inc. Securities Litigation, No. 15-0347, N.D. Calif., 2017 U.S. Dist. LEXIS 26398).



Judge: Investors Failed To Plead Scienter In Chipotle Securities Suit
NEW YORK - Lead plaintiffs have failed to plead any material misrepresentations or scienter in making claims that Mexican restaurant chain Chipotle Mexican Grill Inc. and certain of its executive officers issued certain misrepresentations concealing issues surrounding a widespread series of E. coli outbreaks in violation of federal securities laws, a federal judge in New York ruled March 8 in granting the defendants' motion to dismiss (Susie Ong v. Chipotle Mexican Grill Inc., et al., No. 16-141, S.D. N.Y., 2017 U.S. Dist. LEXIS 33170).



Panel: Alleged Misstatements In Securities Class Action Were Forward-Looking
CINCINNATI - A federal district court did not err in dismissing a securities class action lawsuit because shareholders failed to plead scienter and the defendants' alleged misleading statements were forward-looking and protected, a Sixth Circuit U.S. Court of Appeals panel ruled Feb. 21 in affirming (IBEW Local No. 58 Annuity Fund, et al. v. EveryWare Global Inc., et al., No. 16-3445, 6th Cir., 2017 U.S. Dist. LEXIS 2925).



Judge Dismisses Majority Of Securities Law Claims Against Solar Energy Company
LOS ANGELES - A federal judge in California on March 15 substantially dismissed a securities class action complaint against a solar energy products manufacturer and certain of its executive officers, ruling that shareholders failed to plead the requisite elements of a majority of their federal securities laws claims (Kevin T. Know, et al. v. Yingli Green Energy Holding Co. Ltd., et al., No. 15-4003, C.D. Calif., 2017 U.S. Dist. LEXIS 37223).



Judge: Investors Failed To Plead Misstatements In Etsy Securities Class Action
BROOKLYN, N.Y. - Shareholders in a securities class action lawsuit against the operator of an online marketplace and certain of its executive officers have failed to show that the defendants issued any material misrepresentations or omission or acted with the requisite scienter, a federal judge in New York ruled March 16 in granting the defendants' motion to dismiss (Saleh Altayyar, et al. v. Etsy Inc., et al., No. 15-2785, E.D. N.Y.).



Pension Fund Appointed Lead Plaintiff In Xerox Corp. Securities Class Action
NEW YORK - A pension fund has met all statutory guidelines to serve as lead plaintiff in a securities class action lawsuit against Xerox Corp. and certain of its executive officers, a federal judge in New York ruled Feb. 28 in appointing the pension fund as lead plaintiff (Oklahoma Firefighters Pension and Retirement System v. Xerox Corp., et al., No. 16-8260, S.D. N.Y., 2017 U.S. Dist. LEXIS 28445).



Shareholders May Amend Complaint To Add Claim In Securities Suit, Judge Rules
HOUSTON - Shareholders in a securities class action lawsuit against an energy company, several of its executive officers and directors and others may amend their complaint to add a claim for relief because their motion was filed prior to the deadline for amendments and amendment would not be futile, a federal judge in Texas ruled March 10 in granting the motion (In re Cobalt International Energy Inc. Securities Litigation, No. 14-3428, S.D. Texas; 2017 U.S. Dist. LEXIS 34437).



Judge: Investors Pleaded Elements Of Securities Law Claim Against Drug Company
CHICAGO - An investor group has shown that a pharmaceutical company and certain of its current and former executive officers issued a series of misrepresentations concealing certain financial reporting errors for fiscal year 2014 and concealing the integration of two companies it acquired in violation of federal securities laws, a federal judge in Illinois ruled March 6 in denying the defendants' motion to dismiss (In re Akorn Inc. Securities Litigation, No. 15-1944, N.D. Ill.).



Judge: Investor Failed To Show Biotech Company, Officers Issued Misstatements
SAN FRANCISCO - A lead plaintiff in a securities class action lawsuit against a biotechnology company and certain of its current and former executive officers has failed to plead specificity or falsity in making claims that the defendants issued misrepresentations concealing issues with its suite of products, certain collaborations and revenue disclosures in violation of federal securities law, a federal judge in California ruled Feb. 24 in granting the defendants' motion to dismiss (In re Intrexon Corp. Securities Litigation, No. 16-2398, N.D. Calif., 2017 U.S. Dist. LEXIS 26401).



Defendants In Securities Suit Not Entitled To Sanctions Under PSLRA, Judge Rules
SAN JOSE, Calif. - Defendants in a securities class action lawsuit are not entitled to sanctions pursuant to the Private Securities Litigation Reform Act (PSLRA) because they have not shown that an investor's amended complaint was "legally or factually baseless from an objective perspective" or that the investigation performed by the investor's counsel was reasonable and competent before filing the amended complaint, a federal judge in California ruled March 6 in denying the defendants' motion to amend by imposing sanctions (Tai Jan Bao, et al. v. SolarCity Corp., et al., No. 14-1435, N.D. Calif.; 2016 U.S. Dist. LEXIS 105179).



Hedge Fund Manager's Motions To Vacate Sentence, Civil Forfeiture Denied
NEW YORK - Convicted hedge fund manager Raj Rajaratnam has failed to show that his trial counsel in his criminal proceedings was ineffective by failing to bring certain arguments on appeal of Rajaratnam's conviction for insider trading, a federal judge in New York ruled March 3 in denying a pair of motions to vacate Rajaratnam's sentence and civil forfeiture (Raj Rajaratnam v. United States of America, No. 15-5325, related to: 09cr1184, S.D. N.Y., 2017 U.S. Dist. LEXIS 30726).



Texas Federal Judge Denies Motion To Amend ERISA Complaint Against BP
HOUSTON - A Texas federal judge on March 8 denied a motion filed by participants and beneficiaries of BP entities' employee investment and savings plans covered by the Employee Retirement Income Security Act to file an amended complaint related to the Deepwater Horizon Gulf of Mexico oil spill that resulted in a steep drop in the BP stock price for failure to state a claim (In Re: BP P.L.C. Securities Litigation, In re: BP ERISA Litigation, No. 4:10-cv-4214, S.D. Texas, 2017 U.S. Dist. LEXIS 33302).



High Court Denies Cert In Stock-Drop Case Arising Under ERISA
WASHINGTON, D.C. - The U.S. Supreme Court on Feb. 21 denied a petition for writ of certiorari in a stock-drop case arising under the Employee Retirement Income Security Act (Alex E. Rinehart, et al. v. John F. Akers, et al., No. 16-562, U.S. Sup.).



Investor Appeals Ruling In Yahoo Derivative Suit To 9th Circuit
SAN FRANCISCO - The plaintiff in a shareholder derivative lawsuit against Yahoo! Inc. and certain of its executive officers and directors on March 10 appealed a California federal judge's order dismissing the shareholder's second amended complaint with prejudice (UFCW Local 1500 Pension Fund v. Marissa Mayer, et al., No. 17-15435, 9th Cir.).



Disgorgement Is Both Penalty And Forfeiture, Petitioner Argues
WASHINGTON, D.C. - The 10th Circuit U.S. Court of Appeals erred in determining that disgorgement is not a penalty or forfeiture pursuant to 28 U.S. Code Section 2462, 28 U.S.C. §2462, and thus, is not subject to a five-year statute of limitations, a petitioner argues in a Feb. 24 merits brief (Charles R. Kokesh v. Securities and Exchange Commission, No. 16-529, U.S. Sup., 2017 U.S. S. Ct. Briefs LEXIS 647).



3rd Circuit Asked To Decide Whether Dismissal Of Securities Claims Was In Error
PHILADELPHIA - Parties in a securities class action lawsuit against a technology company and certain of its executive officers recently asked the Third Circuit U.S. Court of Appeals to determine whether a federal judge erred in dismissing a shareholders' amended complaint for failure to plead scienter based on a misunderstanding of the facts (Ryan Fain v. USA Technologies Inc., et al., Nos. 16-2436 and 16-3796, 3rd Cir.).



Parties Seek 2nd Circuit Review Of Securities Class Action Dismissal
NEW YORK - The lead plaintiff and defendants in a securities class action lawsuit against an online foreign exchange market broker and certain of its officers asked the Second Circuit U.S. Court of Appeals recently to decide whether a federal district court judge erred in dismissing the lead plaintiffs' amended complaint for failure to plead scienter pursuant to federal securities laws (Retirement Board of the Policemen's Annuity and Benefit Fund of Chicago v. FXCM Inc., et al., No. 16-3775, 2nd Cir.).



SEC Seeks Rehearing Of 10th Circuit Ruling That ALJs Are Inferior Officers
DENVER - An appellate panel erred in holding that the Securities and Exchange Commission's administrative law judges (ALJs) are inferior officers and subject to appointment pursuant to the appointments clause of the U.S. Constitution, the SEC argues in a March 13 petition for rehearing or rehearing en banc filed in the 10th Circuit U.S. Court of Appeals (David F. Bandimere v. Securities and Exchange Commission, No. 15-9586, 10th Cir.).



Lead Plaintiffs Seek Class Certification In Puma Biotech Securities Suit
SANTA ANA, Calif. - Lead plaintiffs in a securities class action lawsuit against a drug maker and certain of its executive officers asked a federal judge in California on March 15 to certify a class of investors, arguing that class certification is statutorily appropriate (Hsingching Hsu v. Puma Biotechnology Inc., et al., No. 15-0865, C.D. Calif.).



Investor Sues Companies In Attempt To Halt Proposed Merger Deal
SAN FRANCISCO - A shareholder filed a securities class action lawsuit on Feb. 24 in California federal court, alleging that an international sensor chip developer and manufacturer, its board of directors and others breached their fiduciary duty and violated federal securities law by agreeing to the terms of a merger deal that does not take into consideration whether the deal would be of maximum benefit to stockholders (David Dunham v. InvenSense Inc., et al., No. 17-0957, N.D. Calif.).



Netflix, Drug Makers Among Defendants Named In Securities Class Actions
Recent securities class action lawsuits filed in federal courts across the country include complaints alleging misrepresentations by officers and directors of various pharmaceutical companies, media-streaming company Netflix Inc., financial institutions and a digital media solutions company.