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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.



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.