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

LexisNexis® Mealey's™ Emerging Securities Litigation Legal News



Headline Emerging Securities Litigation Legal News from LexisNexis®



 



Deutsche Bank To Pay $7.3B For Misleading Investors In Sale Of RMBS
WASHINGTON, D.C. - Deutsche Bank AG and its current and former subsidiaries and affiliates and ACE Securities Corp. will pay $7.2 billion in civil penalties and relief to homeowners and others to settle claims that homeowners and others to settle claims that they misrepresented the investment quality of residential mortgage-backed securities (RMBS) to investors between 2006 and 2007, the U.S. Department of Justice announced on Jan. 17.



2nd Circuit Revives FDIC Securities Law Claims Against Issuers, Underwriters
NEW YORK - The Federal Deposit Insurance Corp., as receiver for two failed banks, properly filed its complaint for violations of federal securities law within the limits of the FDIC extender statute, and a federal district court erred in dismissing the lawsuit as untimely, a Second Circuit U.S. Court of Appeals panel ruled in a Jan. 18 summary order, reversing and remanding (Federal Deposit Insurance Corp., as receiver for Citizens National Bank and Strategic Capital Bank, v. Credit Suisse First Boston Mortgage Securities Corp., et al., No. 15-1057, 2nd Cir.).



Moody's To Pay $864M To Settle Claims It Provided Compromised Credit Ratings
WASHINGTON, D.C. - Moody's Corp. and two of its subsidiaries (collectively, Moody's) will pay approximately $864 million to settle claims with the Department of Justice, 21 states and the District of Columbia arising from the ratings agency's role in providing compromised credit ratings for residential mortgage-backed securities (RMBS) and collateralized debt obligations (CDOs), the Justice Department announced Jan. 13.



Drug Maker To Pay Nearly $520M To Settle SEC, Justice Department FCPA Claims
WASHINGTON, D.C. - Teva Pharmaceutical Industries Ltd. and its wholly owned Russian subsidiary will pay nearly $520 million to settle claims with government authorities over the generic drug manufacturer's involvement in a bribery scheme in violation of the Foreign Corrupt Practices Act (FCPA), according to press releases issued Dec. 22 by the U.S. Department of Justice and the Securities and Exchange Commission (United States of America v. Teva Pharmaceutical Industries Ltd., et al., No. 16-cr-20967, S.D. Fla.; and Securities and Exchange Commission v. Teva Pharmaceutical Industries Ltd., et al., No. 16-cv-25298, S.D. Fla.).



State Street To Pay Over $64M To Settle Justice Department, SEC Fraud Charges
WASHINGTON, D.C. - State Street Corp. will pay more than $64 million in criminal penalties to the U.S. Department of Justice and the Securities and Exchange Commission to settle charges that it engaged in a scheme to defraud a number of its clients by "secretly applying commissions to billions of dollars of securities trades," according to a Justice Department press release issued on Jan. 18.



Judge Grants Final Approval Of $468M Settlement In Pfizer Securities Suit
NEW YORK - A federal judge in New York on Dec. 21 granted final approval of a $486 million settlement in a securities class action lawsuit between shareholders and certain of its executive officers, ruling that the settlement is fair, reasonable and adequate (In re Pfizer Inc. Securities Litigation, No. 04-9866, S.D. N.Y.).



Judge: Investor Failed To Show Medical Device Maker Misstated FDA Conditions
BOSTON - A shareholder failed to show that a medical device maker and certain of its current and former executive officers issued material misrepresentations or omissions in connection with the company's statements made regarding the U.S. Food and Drug Administration's approval of a spinal injury repair device, a First Circuit U.S. Court of Appeals panel ruled Jan. 9 (Edmond Ganem, et al. v. InVivo Therapeutics Holdings Corp., et al., No. 15-1544, 1st Cir.; 2017 U.S. App. LEXIS 385).



Judge: Defendants In Securities Suit Didn't Act With Deliberate Recklessness
DETROIT - Lead plaintiffs in a securities class action lawsuit against a drug company and its CEO have failed to plead their federal securities law claims because they have not shown that any of the alleged misrepresentations made by the defendants were actionable or that the defendants acted with deliberate recklessness, a federal judge in Michigan ruled Dec. 27 in granting the defendants' motion to dismiss (Kevin L. Dougherty v. Esperion Therapeutics Inc., et al., No. 16-10089, E.D. Mich.; 2016 U.S. Dist. LEXIS 178581).



9th Circuit Affirms Dismissal Of Securities Suit Against Tesla Motors
SAN FRANCISCO - A federal district court did not err in dismissing a securities class action lawsuit against Tesla Motors Inc. and its CEO because shareholders failed to plead any materially misleading statements or omissions in making their federal securities law claims, a Ninth Circuit U.S. Court of Appeals panel ruled Dec. 21 (In re Tesla Motors Inc. Securities Litigation, No. 14-17501, 9th Cir.).



Stock Promotion Articles Not Actionable In Securities Class Action, Panel Rules
ATLANTA - A pharmaceutical company and certain of its officers and directors cannot be held liable for articles promoting the company's new nonalcoholic steatohepatitis drug because, even though the company paid stock promoters to write the articles, the defendants did not actually make any of the alleged misstatements, an 11th Circuit U.S. Court of Appeals panel ruled Dec. 15 (In re Galectin Therapeutics Inc. Securities Litigation, No. 16-10324, 11th Cir.; 2016 U.S. Dist. LEXIS 22317).



Judge: Investors Failed To Plead Facts Supporting Misrepresentation Claims
NEW YORK - Lead plaintiffs in a securities class action lawsuit against a Chinese online retailer and others have failed to plead any actionable misrepresentations or omissions in support of their claim that the defendants concealed their intention to shut down the company's beauty supply marketplace in violation of federal securities laws, a federal judge in New York ruled Jan. 10 in granting the defendants' motion to dismiss certain claims (In re Jumei International Holding Limited Securities Litigation, No. 14-9826, S.D. N.Y.; 2017 U.S. Dist. LEXIS 3206).



Zimmer Biomet To Pay $30.4M To Settle Foreign Bribery Claims By United States
WASHINGTON, D.C. - Orthopedic device maker Zimmer Biomet Holdings Inc. and an indirect subsidiary will pay $30.4 million to resolve criminal charges that they violated the Foreign Corrupt Practices Act (FCPA) by paying bribes to people in Mexico and for violating a 2012 deferred prosecution agreement (DPA) for earlier FCPA violations, the U.S. Justice Department announced Jan. 12 (United States of America v. Zimmer Biomet Holdings, Inc., No. 12-cr-80, United States of America v. JERDS Luxembourg Holdings S.A.R.L., No. n/a, D. D.C.).



Supreme Court Agrees To Hear Appeal Challenging American Pipe Tolling
WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 13 agreed to hear 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.).



U.S. Supreme Court Won't Hear Appeal In Securities Class Action Lawsuit
WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 9 declined review of a securities class action appeal seeking a determination whether the extender provision for the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) displaces the statute of repose for Section 13 of the Securities Act of 1933 (First Horizon Asset Securities Inc., et al. v. Federal Deposit Insurance Co., No. 16-463, U.S. Sup.).



High Court To Hear Appeal In SEC Enforcement Action Over Disgorgement Fee
WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 13 agreed to hear an appeal in a Securities and Exchange Commission enforcement action in which an investment adviser seeks a determination as to whether claims for disgorgement are subject to a five-year statute of limitations under federal statute (Charles R. Kokesh v. Securities and Exchange Commission, No. 16-529, U.S. Sup.).



Judge Dismisses Securities Suit For Lack Of Actionable Misrepresentations
LOS ANGELES - A shareholder has failed to show that a Chinese internet content and content delivery company issued any actionable misstatements or omissions or acted with the requisite scienter in making claims that the defendants misrepresented issues with the company's transition to a new cache cloud, a federal judge in California ruled Jan. 9 in granting the company's motion to dismiss (Guangyi Xu v. ChinaCache International Holdings Ltd., et al., No. 15-7952, C.D. Calif.; 2017 U.S. Dist. LEXIS 4235).



Judge: Investors Failed To Show Involvement In Market Manipulation Scheme
NEW YORK - Shareholders have failed to show that a biopharmaceutical company and certain of its executive officers and directors engaged in a market manipulation scheme because the shareholders failed to identify any promotional materials that were edited or commissioned by the defendants, a federal judge in New York ruled Dec. 29 in dismissing the shareholders' federal securities law claims and denying their request to amend (Kevin Cortina, et al. v. Anavex Life Sciences Corp., et al., No. 15-10162, S.D. N.Y.; 2016 U.S. Dist. LEXIS 179905).



9th Circuit Affirms Lack Of Federal Jurisdiction In Stock Redemption Suit
SAN FRANCISCO - The Securities Litigation Uniform Standards Act does not provide an independent basis for federal question jurisdiction under 28 U.S. Code Section 1331, a Ninth Circuit U.S. Court of Appeals panel ruled Dec. 21, affirming the dismissal of a class action breach of contract complaint for lack of subject matter jurisdiction (David Rainero v. Archon Corporation, No. 14-17106, 9th Cir.; 2016 U.S. App. LEXIS 22893).



Investors' Securities Claims Fail To Meet Pleading Requirements, Judge Rules
SAN FRANCISCO - Shareholders in a securities class action lawsuit against a specialty oil products manufacturer and distributor, certain of its current and former officers and directors and underwriters of two stock offerings failed to plead falsity in making their federal securities law claims because their claims failed to meet the strict pleading standards of the Private Securities Litigation Reform Act (PSLRA) and Federal Rule of Civil Procedure 9(b), a federal judge in California ruled Dec. 29 (Norfolk County Retirement System, et al. v. Solazyme Inc., et al., No. 15-2938, N.D. Calif.; 2016 U.S. Dist. LEXIS 179949).



Judge: Investor Failed To Plead Demand Futility Under Either Prong Of Aronson
LOS ANGELES - An investor in a shareholder derivative lawsuit against 17 current and former executive officers and directors of a drug company has failed to show that the defendants were interested in the outcome of the litigation or that their actions were in violation of the business judgment rule under Aronson v. Lewis, a federal judge in California ruled Jan. 10 in granting the company's motion to dismiss (Judy Durgin v. Kevin Sharer, et al., No. 07-3001, C.D. Calif.).



High Court Asked To Determine Jurisdiction Over Securities Act Claims
WASHINGTON, D.C. - A California state court lacked subject matter jurisdiction because only claims under the Securities Act of 1933 were made, defendants argue in a recent petition for writ of certiorari filed in the U.S. Supreme Court (FireEye Inc., et al. v. Superior Court of California, County of San Mateo, No. 16-744, U.S. Sup.; 2016 U.S. S. Ct. Briefs LEXIS 4522).



Investors Seek High Court Review Of 11th Circuit Loss Causation Ruling
WASHINGTON, D.C. - The U.S. Supreme Court should grant review of an 11th Circuit U.S. Court of Appeals ruling affirming dismissal of a securities class action lawsuit for failure to plead loss causation because the circuit court's ruling is at odds with other federal circuit courts and is contrary to Supreme Court precedent, lead plaintiffs argue in a recent petition for writ of certiorari (Norfolk County Retirement System, et al. v. Health Management Associates Inc., et al., No. 16-685, U.S. Sup.).



2nd Circuit Erred In Finding Item 303 Creates Duty To Disclose, Amici Argue
WASHINGTON, D.C. - The Second Circuit U.S. Court of Appeals erred in determining that Item 303 of Securities and Exchange Commission Regulation S-K creates a "duty" to disclose that is actionable under SEC Rule 10b-5, the Securities Industry and Financial Markets Association (SIFMA) and the U.S. Chamber of Commerce argue in a recent amicus curiae brief filed in the U.S. Supreme Court in support of a defense company defendant in a securities class action lawsuit (Leidos Inc., v. Indiana Public Retirement System, et al., No. 16-581, U.S. Sup.; 2016 U.S. S. Ct. Briefs LEXIS 4389).



Parties Debate Whether Investor Has Pleaded Misrepresentations, Scienter
SAN FRANCISCO - Parties in a securities class action lawsuit against consumer electronics company GoPro Inc. and certain of its current and former executive officers asked a federal district court to determine whether the lead plaintiff in the action has properly pleaded any actionable misrepresentations or omissions and scienter in making its federal securities law claims, the parties argue in competing briefs filed recently in California federal court (Joseph Bodri v. GoPro Inc., et al., No. 16-0232, N.D. Calif.).



Misrepresentations, Materiality Sufficiently Pleaded, Investors Argue
NEW YORK - Corporate defendants in a securities class action lawsuit have failed to show that lead plaintiffs did not plead a material misstatement or omission or materiality in making their federal securities law claims, and as a result, summary judgment is not warranted, the lead plaintiffs argue in a recent opposition brief filed in a New York federal court (In re Barclays Bank PLC Securities Litigation, No. 09-1989, S.D. N.Y.).



Investor: Biotech Company Concealed Gene Therapy Treatment Shortcomings
NEW YORK - A biotechnology company and certain of its executive officers concealed from investors that the science company's gene replacement therapy drug was not viable and that the company's principal executive officer previously worked for a biotech promoter that was subject to securities fraud violations in violation of federal securities laws, a shareholder argues in a Dec. 16 securities class action complaint filed in New York federal court (David Reilly v. Abeona Therapeutics Inc., f/k/a Plasmatech Biopharmaceuticals Inc., et al., No. 16-9730, S.D. N.Y.).



Tech Companies, Drug Makers, Retail Chains All Subjects Of Securities Suits
Recent securities class action lawsuits filed in federal courts across the country include complaints alleging misrepresentations by officers and directors of various technology companies, pharmaceutical companies, retail chains and an independent free-standing emergency room.



Supreme Court Upholds Conviction Of Man For Role In Insider Trading Scheme
WASHINGTON, D.C. - A federal appellate court did not err in affirming a lower court's conviction of a man for his role in an insider trading scheme pursuant to U.S. Supreme Court precedent because even though the insider did not receive a financial benefit from providing the information, the trader and insider are relatives, the U.S. Supreme Court ruled on Dec. 6 (Bassam Yacoub Salman v. United States of America, No. 15-628, U.S. Sup.).



U.S. Supreme Court Declines Review Of Insider Trading Conviction
WASHINGTON, D.C. - The U.S. Supreme Court on Dec. 12 declined review of former Foundry Networks Inc. executive David Riley's appeal of his conviction for insider trading, deciding not to determine whether Riley was prejudiced by a federal district court's jury instruction as to personal benefit (David Riley v. United States of America, No. 15-1511, U.S. Sup.).



Former FDA Deputy To Pay $127,496 For Insider Trading Role Involving Generics
NEW YORK - A former Food and Drug Administration deputy director turned industry lobbyist was enjoined Nov. 14 from violating the Securities Exchange Act for his role in giving FDA insider information to a hedge fund manager who reportedly made millions from the scheme (Securities and Exchange Commission v. Sanjay Valvani, et al., No. 16-4512, S.D. N.Y.).



Deutsche Bank To Pay $37M To Settle Dark Pool Claims With New York AG, SEC
NEW YORK - Deutsche Bank Securities Inc. will pay $37 million to the state of New York and the Securities and Exchange Commission to settle claims that it issued a series of misrepresentations and omissions in connection with the marketing of Deutsche Bank's "Dark Pool Ranking Model" (DPRM), according to a press release issued on Dec. 16 by New York Attorney General Eric Schneiderman.



Judge Rejects Defendants' Reconsideration Motion In Securities Fraud Suit
CENTRAL ISLIP, N.Y. - A federal judge in New York on Dec. 8 denied a motion for reconsideration of a previous reconsideration order in a securities fraud lawsuit against the former chairman of the board of directors for an internet startup company, ruling that "no procedural vehicle exists for the reconsideration of a motion for reconsideration" (Securities and Exchange Commission v. iShopNoMarkup.com, et al., No. 04-4057, E.D. N.Y.; 2016 U.S. Dist. LEXIS 169980).



Broker-Dealer, Former Executive To Pay More Than $24.5M To Settle SEC Lawsuit
MILWAUKEE - Broker-dealer Stifel, Nicolaus & Co. Inc. and its former senior vice president will pay more than $24.5 million and admit wrongdoing in connection with their role in a scheme to sell synthetic collateralized debt obligations (CDOs) to five Wisconsin school districts in violation of federal securities law, a federal judge in Wisconsin ruled Dec. 6 (Securities and Exchange Commission v. Stifel, Nicolaus & Co. Inc., et al., No. 11-0755, E.D. Wis.).



Court Properly Dismissed Most Securities Claims Against Drug Maker, Panel Rules
BOSTON - A First Circuit U.S. Court of Appeals panel on Nov. 28 substantially affirmed a federal district court's dismissal of claims in a securities class action lawsuit against a pharmaceutical company, certain of its current and former officers and directors and others, ruling that shareholders failed to plead a material misrepresentation or scienter in arguing that the defendants violated federal securities laws by misrepresenting clinical trial results for the company's cancer drug (In re ARIAD Pharmaceuticals Inc. Securities Litigation, No. 15-1491, 1st Cir.).



SEC Pleaded Material Misrepresentation, Scienter Against CFO, Judge Rules
TAMPA, Fla. - The Securities and Exchange Commission has properly pleaded a material misrepresentation or omission in claiming that the former chief financial officer (CFO) of a petroleum storage and sales company withheld information from investors regarding, inter alia, the storage capacity of tanks at the company's three facilities in violation of federal securities laws, a federal judge in Florida ruled Dec. 9 in denying the CFO's motion to dismiss the complaint in its entirety (Securities and Exchange Commission v. Michael P. Toups, et al., No. 16-1798, M.D. Fla.; 2016 U.S. Dist. LEXIS 171478).



Judge: Investors Failed To Plead Demand Futility In Home Depot Derivative Suit
ATLANTA - Dismissal of claims in a shareholder derivative lawsuit against The Home Depot Inc. and certain of its current and former executive officers and directors for their alleged role in failing to implement the necessary internal controls to prevent a payment card data breach is proper because the shareholders have not shown that demand was futile, a federal judge in Georgia ruled Nov. 30 (In re The Home Depot Inc. Shareholder Derivative Litigation, No. 15-2999, N.D. Ga.; 2016 U.S. Dist. LEXIS 164841).



Retirement System Failed To Plead Material Misrepresentation, Judge Rules
SAN FRANCISCO - A retirement system failed to plead any material misrepresentations or omissions in pleading its federal securities law claims against a seller of hybrid data storage products and certain of its executive officers, but it may be able to cure its deficiencies with amendment of its complaint, a federal judge in California ruled Dec. 9 (In re Nimble Storage Inc. Securities Litigation, No. 15-5803, N.D. Calif.; 2016 U.S. Dist. LEXIS 170924).



Investor Group Appointed Lead Plaintiff In Lipocine Securities Class Action
TRENTON, N.J. - A federal judge in New Jersey on Dec. 2 appointed an investor group as lead plaintiff in a securities class action lawsuit against a pharmaceutical company and certain of its executive officers, ruling that the investor group has the largest financial stake in the litigation and meets all statutory requirements to serve as lead plaintiff (David Lewis v. Lipocine Inc., et al., No. 16-4009, D. N.J. and Anthony Morassi, et al. v. Lipocine Inc., et al., No. 16-4067, D. N.J.; 2016 U.S. Dist. LEXIS 166532).



Tender Of Settlement In Securities Suit Does Not Moot Claims, Judge Rules
HOUSTON - A tender of settlement by underwriter defendants in a securities class action lawsuit against an energy company and others does not make the suit moot because the lead plaintiff in the action refused to accept it and because the amount did not take the shareholder's legal fees and expenses into consideration, a federal judge in Texas ruled Dec. 9 (Joseph Pankowski v. BlueNRGY Group Ltd., f/k/a CBD Energy Ltd., et al., No. 15-1668, S.D. Texas; 2016 U.S. Dist. LEXIS 170495).



Institutional Investor Group Appointed Lead Plaintiff In Securities Class Action
NEW YORK - A group of institutional investors has met all statutory requirements to serve as lead plaintiff in a securities class action against a real estate investment trust and several of its former executive officers and directors, a federal magistrate judge in New York ruled Nov. 29 (Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefit Funds v. Brixmor Property Group Inc., et al., No. 16-2400, S.D. N.Y.; 2016 U.S. Dist. LEXIS 164682).



Panel Affirms Dismissal Of Claims In Securities Suit Against Software Company
RICHMOND, Va. - Without providing any detail for its ruling in a per curiam opinion, a Fourth Circuit U.S. Court of Appeals panel on Nov. 30 affirmed a federal district court's dismissal of a securities class action lawsuit against a software company and certain of its executive officers (Justin Dice, et al. v. ChannelAdvisor Corp., et al., No. 16-1495, 4th Cir.; 2016 U.S. App. LEXIS 21415).



Judge: Investors Have Had Enough Time To Collect Demand Futility Information
PHOENIX - A federal judge in Arizona on Nov. 29 denied a motion for an extension to file an amended complaint in a shareholder derivative lawsuit against several current and former officers and directors of a solar panel maker, ruling that investors have had enough time to gather the necessary information for them to plead demand futility (In re First Solar Derivative Litigation, No. 12-0769, D. Ariz.; 2016 U.S. Dist. LEXIS 164272).



High Court Asked To Clarify American Pipe Tolling Doctrine
WASHINGTON, D.C. - Parties in a securities class action lawsuit against The Bear Stearns Companies LLC and others asked the U.S. Supreme Court recently 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.).



Defendants: Circuit Court's Ruling Securities Suit In Line With American Pipe
WASHINGTON, D.C. - U.S. Supreme Court review of a New York federal court's dismissal of a securities class action lawsuit is not necessary because the federal court properly determined that investors' claims were not timely in line with the Supreme Court's ruling in American Pipe & Construction Co. v. Utah, defendants argue in an opposition brief filed Nov. 7 (Russell Dusek, et al. v. JPMorgan Chase & Co., et al., No. 16-389, U.S. Sup.; 2016 U.S. S. Ct. Briefs LEXIS 4067).



Defendants: Waldburger Ruling Cured Circuit Split Over American Pipe Tolling
WASHINGTON, D.C. - The U.S. Supreme Court's recent ruling in CTS Corp. v. Waldburger has resolved any split among federal circuit courts as to how to determine whether statutes of repose may be tolled in securities class action lawsuits, and review is, thus, unnecessary, defendants argue in a Nov. 23 opposition brief filed in the Supreme Court (California Public Employees' Retirement System v. Moody Investors Service Inc., et al., No. 16-373, U.S. Sup.; 2016 U.S. S. Ct. Briefs LEXIS 4405).



Parties Debate Whether FIRREA's Extender Statute Displaces Statute Of Repose
WASHINGTON, D.C. - Parties in a securities class action lawsuit recently asked the U.S. Supreme Court to determine whether the extender provision for the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) displaces the statute of repose for Section 13 of the Securities Act of 1933 (First Horizon Asset Securities Inc., et al. v. Federal Deposit Insurance Co., No. 16-463, U.S. Sup.).



Tech Company Seeks High Court Review Of Securities Fraud Ruling
WASHINGTON, D.C. - The U.S. Supreme Court should grant review of a Second Circuit U.S. Court of Appeals' ruling to settle 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, a company argues in a recent petition for writ of certiorari (Leidos Inc., v. Indiana Public Retirement System, et al., No. 16-581, U.S. Sup.).



Traders Hit With SEC Suit Over Involvement In Market Manipulation Scheme
NEWARK, N.J. - The Securities and Exchange Commission on Dec. 12 sued two stock traders in New Jersey federal court, alleging that the traders engaged in a "lucrative fraudulent market manipulation scheme" that provided them with $26 million in illicit profits in violation of federal securities laws (Securities and Exchange Commission v. Joseph Taub, et al., No. 16-9130, D. N.J.).



Investor Sues Drug Company, Others Over Involvement In Price-Fixing Scheme
NEW YORK - A specialty pharmaceutical company and several of its current and former officers and directors concealed their involvement in an illegal generic drug price-fixing scheme in violation of federal securities laws, an investor argues in a Nov. 8 complaint filed in New York federal court (Charles R. Haile Jr. v. Allergan plc, et al., No. 16-8661, S.D. N.Y.).



Drug Makers, Software Developer, Energy Providers Hit With Securities Suits
Recent securities class action lawsuits filed in federal courts across the country include complaints alleging misrepresentations by officers and directors of various pharmaceutical companies, software developers and a solar energy provider.



JPMorgan's Asia Subsidiary To Pay $264M To Settle FCPA Violation Claims
BROOKLYN, N.Y. - The Asian subsidiary of JPMorgan Chase & Co. has agreed to pay $264 million to settle claims with three government agencies over its involvement in a scheme to "corruptly gain advantages in winning banking deals by awarding prestigious jobs to relatives and friends of Chinese government officials" in violation of the Foreign Corrupt Practices Act, according to press releases issued on Nov. 17 by the Department of Justice, the Securities and Exchange Commission and the Federal Reserve Board.



Judge Grants Preliminary Approval Of $175M Settlement In BP Oil Spill MDL
HOUSTON - A federal judge in Texas on Nov. 4 granted preliminary approval of a $175 million settlement in a securities class action lawsuit against BP PLC and certain of its executive officers arising out of the Deepwater Horizon oil spill and denied a motion filed by institutional investors to modify the settlement's opt-out requirements (In re BP p.l.c. Securities Litigation, No. 10-md-2185, S.D. Texas).



Federal Judge Grants Final Approval Of $3M Securities Class Action Settlement
TRENTON, N.J. - A federal judge in New Jersey on Nov. 15 granted final approval of a $3 million securities class action settlement with an alternative energy company and others, ruling that the settlement is fair, reasonable and adequate and meets all statutory requirements for approval (In re Ocean Power Technologies Inc. Securities Litigation, Nos. 14-3799, 14-3815, 14-4015 and 14-4592, D. N.J.; 2016 U.S. Dist. LEXIS 158222).



Contained Required Cautionary Language, Judge Rules
HOUSTON - A federal judge in Texas on Oct. 21 ruled that dismissal of an amended complaint in a securities class action lawsuit against parties to a merger deal is proper because lead plaintiffs failed to show that alleged misrepresentations and omissions made by the parties regarding debt and future distributions issues were not publicly available and did not contain the required cautionary language (Irving Braun, et al. v. Eagle Rock Energy Partners, LP, et al., No. 15-1470, S.D. Texas; 2016 U.S. Dist. LEXIS 146035).



Investor Group Pleaded Elements Of Securities Law Claim, Judge Rules
SAN FRANCISCO - The lead plaintiff in a securities class action lawsuit against a fitness-tracking device manufacturer and certain of its executive officers has properly pleaded an actionable misrepresentation or omission, scienter and loss causation, a federal judge in California ruled Oct. 26 in denying the defendants' motion to dismiss (Brian H. Robb v. Fitbit Inc., et al., No. 16-151, N.D. Calif.; 2016 U.S. Dist. LEXIS 149321).



Pension Fund Named Lead Plaintiff In Securities Suit Against Ammunition Maker
ALEXANDRIA, Va. - A federal judge in Virginia on Nov. 10 appointed a union pension fund as lead plaintiff in a securities class action lawsuit against an ammunition manufacturer and certain of its executive officers, ruling that although the pension fund has not sustained the largest losses of the group of movants seeking to serve as lead plaintiff, the only other institutional investor is prevented from serving as lead plaintiff pursuant to the Private Securities Litigation Reform Act's (PSLRA) Five-In-Three Provision (Steven Knurr, et al. v. Orbital ATK Inc., et al., No. 16-1031, E.D. Va.; 2016 U.S. Dist. LEXIS 156591).



Investors' Securities Act Claims Time-Barred, Federal Judge Rules
NEW YORK - Dismissal of federal claims in a securities class action lawsuit against a commercial helicopter operator, certain of its current and former officers and directors and underwriters of the company's initial public offering (IPO) is proper because the shareholders' claims were time-barred and because the shareholders failed to state a claim for relief, a federal judge in New York ruled Nov. 7 (Errol Rudman, et al. v. CHC Group Ltd, et al., No. 15-3773, S.D. N.Y.).



Renewable Energy Company Sales Representative, Firm Settle SEC Claims
WASHINGTON, D.C. - A renewable energy company's sales representative and a related firm have agreed to settle Securities and Exchange Commission claims that they engaged in a scheme to defraud the energy company's investors in violation of federal securities laws, according to a press release issued by the SEC on Nov. 17 (Securities and Exchange Commission v. Patrick S. Carter, et al., No. 16-2070, C.D. Calif.).



Investors Appointed As Lead Plaintiffs In Charles Schwab Securities Class Action
SAN FRANCISCO - A federal judge in California on Nov. 2 appointed a pair of investors as lead plaintiffs in a securities class action lawsuit against Charles Schwab Corp. and others, ruling that the investors have the largest financial interest in the litigation and meet the statutory requirements of typicality and adequacy (Robert Crago v. Charles Schwab & Co. Inc., et al., No. 16-3938, N.D. Calif.).



Robbins Geller Appointed As Lead Counsel In LendingClub Securities Class Action
SAN FRANCISCO - A federal judge in California on Oct. 28 appointed the law firm of Robbins Geller Rudman & Dowd to serve as lead counsel in a securities class action lawsuit against LendingClub Corp. and certain of its current and former executive officers, ruling that the law firm "was within the scope of several reasonable choices and was not influenced by any pay-to-play considerations" (Steeve Evellard v. LendingClub Corp., et al., No. 16-2627, N.D. Calif.).



Judge: Investors Failed To Show Post-Acquisition Deal Issues Led To Stock Drop
SAN JOSE, Calif. - Lead plaintiffs in a securities class action lawsuit against a cyber-attack detection and protection software developer and certain of its executive offices have failed to plead a material misrepresentation, scienter or scheme liability in making their claims that the defendants misrepresented the impact of an acquisition deal's impact on product integration, a federal judge in California ruled Nov. 14 (Vijay Fadia v. FireEye Inc., et al., No. 14-5204, N.D. Calif.; 2016 U.S. Dist. LEXIS 157391).



Panel: Lock-Up Agreements Don't Render Underwriters, Shareholders A Group
NEW YORK - Standard lock-up agreements in the initial public offering (IPO) for Facebook Inc. between lead underwriters of the IPO and pre-IPO shareholders are not sufficient, alone, to render those parties a group under federal securities law, a Second Circuit U.S. Court of Appeals panel ruled Nov. 3 (Robert Lowinger, et al. v. Morgan Stanley & Co. LLC, et al., No. 14-3800, 2nd Cir.; 2016 U.S. App. LEXIS 19887).



TD Ameritrade Did Not Aid, Participate In Ponzi Scheme, 11th Circuit Panel Rules
ATLANTA - A federal district court did not err in dismissing a securities class action lawsuit brought by investors who alleged that TD Ameritrade Inc. and certain of its affiliates aided and/or participated in a Ponzi scheme because the investors failed to show that the defendants actually participated in the sale of the securities at issue, an 11th Circuit U.S. Court of Appeals panel ruled Oct. 21 in a per curiam opinion (William A. Curry, et al. v. TD Ameritrade Inc., et al., No. 16-12041, 11th Cir.; 2016 U.S. App. LEXIS 18996).



2nd Circuit Declines Motion For Rehearing En Banc In Vivendi Securities Suit
NEW YORK - Without providing any detail, the Second Circuit U.S. Court of Appeals on Nov. 10 declined to grant a French company's motion for rehearing or rehearing en banc of the court's previous ruling affirming a jury's verdict against the company for violations of federal securities laws (In re Vivendi S.A. Securities Litigation, No. 15-180, 2nd Cir.).



Judge: Investors Failed To Plead Falsity In Stock- Drop Case Against Drug Maker
SAN FRANCISCO - Shareholders in a securities class action lawsuit against a clinical-stage biopharmaceutical company and others failed to plead falsity in making their federal securities law claims, a federal judge in California ruled Nov. 4 in granting the defendants' motion to dismiss for failure to state a claim for relief (In re Avalanche Biotechnologies Inc. Securities Litigation, No. 15-3185, N.D. Calif.; 2016 U.S. Dist. LEXIS 152891).



Judge Certifies Class In Mortgage-Backed Securities Class Action Lawsuit
NEW YORK - A federal judge in New York on Nov. 5 granted a health fund's motion for class certification in a securities class action lawsuit, ruling that the health fund has met all statutory requirements for certification of the class (New Jersey Health Fund v. Royal Bank of Scotland Group PLC, et al., No. 08-5310, S.D. N.Y.; 2016 U.S. Dist. LEXIS 153804).



Judge: Lead Plaintiffs Failed To Plead Materiality In Securities Class Action
MINNEAPOLIS - Lead plaintiffs in a securities class action lawsuit against a technology company, certain of its officers and directors and others have failed to plead materiality or and false and misleading statements in making their federal securities law claims, a federal judge in Minnesota ruled Oct. 25 in dismissing their consolidated amended complaint (Matthew Ridler, et al. v. Hutchinson Technology Inc., et al., No. 15-4356, D. Minn.; 2016 U.S. Dist. LEXIS 147906).



Retired Judges Argue Review Of Challenge To American Pipe Rule Necessary
WASHINGTON, D.C. - The U.S. Supreme Court should grant review of a New York federal judge's ruling that an individual investors' securities lawsuit is untimely because interpretation of its precedent in American Pipe & Construction Co. v. Utah is necessary to provide determination as to whether the rule established in that action applies to the three-year statute of limitations under Section 13 of the Securities Act of 1933, a group of retired federal judges argues in an Oct. 24 amicus curiae brief in support of a California pension fund (California Public Employees' Retirement System v. Moody Investors Service Inc., et al., No. 16-373, U.S. Sup.; 2016 U.S. S. Ct. Briefs LEXIS 3839).



High Court Review Of Ruling Necessary Under American Pipe, Investors Say
WASHINGTON, D.C. - U.S. Supreme Court review of a New York federal court's dismissal of a securities class action lawsuit is proper because the federal court erred in determining that investors' claims were not timely in contradiction to the Supreme Court's ruling in American Pipe & Construction Co. v. Utah, the investors argue in a petition for writ of certiorari filed Sept. 26 (Russell Dusek, et al. v. JPMorgan Chase & Co., et al., No. 16-389, U.S. Sup.; 2016 U.S. S. Ct. Briefs LEXIS 3491).



Defendants Seek D.C. Circuit Rehearing On SEC ALJ Appointments Clause Ruling
WASHINGTON, D.C. - Parties in an appeal of Securities and Exchange Commission cease-and-desist proceedings recently asked the District of Columbia Circuit U.S. Court of Appeals to consider whether rehearing en banc is necessary to determine whether a panel erred in ruling that the SEC's appointment of administrative law judges (ALJs) was not in violation of the U.S. Constitution's appointments clause (Raymond J. Lucia Companies Inc., et al. v. Securities and Exchange Commission, No. 15-1345, D.C. Cir.).



Lead Plaintiffs Failed To Plead Misrepresentation, Materality, Barclays Argues
NEW YORK - Lead plaintiffs in a securities class action lawsuit against Barclays Bank PLC and others have failed to plead any actionable misrepresentations or omissions, materiality or loss causation regarding the drop in value of the company's Series 5 stock in making their federal securities law claims, Barclays and several current and former officers and directors argue in an Oct. 21 motion for summary judgment filed in New York federal court (In re Barclays Bank PLC Securities Litigation, No. 09-1989, S.D. N.Y.).



Exxon Concealed Climate Change's Effects On Business Model, Investors Says
DALLAS - An Exxon Mobil Corp. shareholder filed a securities class action complaint in Texas federal court on Nov. 7, alleging that the company and certain of its senior officials issued a series of misrepresentations regarding Exxon's business model and the effect global warming and climate change were expected to have on that business model in violation of federal securities laws (Pedro Ramirez Jr. v. Exxon Mobil Corp., et al, No. 16-3111, N.D. Texas).



Drug Maker Concealed Collusive Activity From Investors, Shareholder Argues
NEW YORK - A pharmaceutical company and certain of its current and former executive officers misrepresented the company's business and financial condition to investors and engaged in violations of federal antitrust law by colluding with other generic drug makers to artificially inflate the price of generic drugs in violation of federal securities laws, a shareholder argues in an Oct. 25 complaint filed in New York federal court (Christopher Speakes v. Taro Pharmaceuticals Industries Ltd., et al., No. 16-8318, S.D. N.Y.).



Financial Sector, Price-Fixing Scheme, Misrepresentation Suits Filed
Recent securities class action and shareholder derivative lawsuits filed in federal courts across the country include complaints alleging misrepresentation regarding Wells Fargo & Co.'s cross-selling performance metric, the clinical study results for a Parkinson's disease drug and the involvement of poultry-processing companies in a price-fixing scheme in the broiler chicken market.