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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®



 



Shareholders Failed To Correct Loss Causation Deficiencies, Judge Rules
SAN FRANCISCO - Shareholders have failed to show how an anonymous blogger report is adequate to serve as a corrective disclosure to support loss causation, a federal judge in California ruled Sept. 2 in dismissing the shareholders' amended complaint (Francis J. Bonanno v. Cellular Biomedicine Group Inc., et al., No. 15-1795, N.D. Calif.; 2016 U.S. Dist. LEXIS 119194).



Panel: Court Properly Ruled That Securities Claims Were Barred By Precedent
ATLANTA - A federal district court did not err in dismissing a securities class action lawsuit against home security company The ADT Corp., its CEO and others because shareholder claims are barred pursuant to precedent and because the shareholders failed to plead any material misrepresentation or scienter, an 11th Circuit U.S. Court of Appeals panel ruled in a per curiam opinion filed Sept. 9 (IBEW Local 595 Pension and Money Purchase Pension Plans, et al. v. The ADT Corp., et al., No. 15-13595, 11th Cir.; 2016 U.S. App. LEXIS 16454).



Judge Won't Reconsider Ruling In Securities Suit Against Medical Device Maker
PHILADELPHIA - Without providing any detail, a federal judge in Pennsylvania on Sept. 9 denied a shareholder's motion to reconsider an earlier ruling dismissing a securities class action complaint for failure to plead an actionable misrepresentation or scienter (Mark Silverstein v. Globus Medical Inc., et al., No. 15-5386, E.D. Pa.; 2016 U.S. Dist. LEXIS 113740).



Target Corp. Securities Suits Consolidated; Lead Plaintiff, Counsel Appointed
MINNEAPOLIS - A federal magistrate judge in Minnesota on Sept. 15 consolidated a pair of securities class action lawsuits against Target Corp. and certain of its executive officers and appointed the law firm of Robbins Geller Rudman & Dowd as lead counsel (In re Target Corp. Securities Litigation, No. 16-1315, D. Minn.).



Magistrate Judge Recommends That Class Be Certified In Securities Class Action
TYLER, Texas - Determining that a securities class action lawsuit meets the Federal Rules of Civil Procedure 23(a) and 23(b)(2) requirements for class certification, a federal magistrate judge in Texas on Aug. 29 recommended that a class certification motion be granted and a pension fund be appointed as lead plaintiff (Alan B. Marcus v. J.C. Penney Co. Inc., et al., No. 13-0736, E.D. Texas; 2016 U.S. Dist. LEXIS 115795).



High Court Grants Extension Of Time To File Petition In Best Buy Securities Suit
WASHINGTON, D.C. - The U.S. Supreme Court has granted shareholders a more than a month's extension to file a petition for writ of certiorari in a securities class action lawsuit in which the shareholders are challenging the Eighth Circuit U.S. Court of Appeals' reversal of a lower court's grant of class certification, according to a letter filed Sept. 1 in the Eighth Circuit (IBEW Local 98 Pension Fund, et al. v. Best Buy Co., Inc., et al., No. 14-3178, 8th Cir.).



Judge's Ruling In Securities Class Action Is Premature, Defendants Argue
NEW YORK - A federal judge in New York erred in determining that defendants in a securities class action lawsuit failed to timely file any opposition to a motion for class certification because the civil case management plan and scheduling order entered by the judge set an Oct. 11 deadline for the opposition to be filed, defendants argue in a letter filed Sept. 14 (Arthur Menaldi v. Och-Ziff Capital Management Group LLC, et al., No. 14-3251, S.D. N.Y.).



Lead Plaintiffs Failed To Plead Demand Futility In Shareholder Derivative Suit
OAKLAND, Calif. - A federal judge in California on Aug. 26 granted a motion to dismiss filed by defendants in a shareholder derivative lawsuit, ruling that the lead plaintiffs lacked standing to bring their claims and failed to properly plead demand futility pursuant to the Delaware Supreme Court's ruling in Rales v. Blasband (In re Rocket Fuel Inc. Derivative Litigation, No. 15-4625, N.D. Calif.; 2016 U.S. Dist. LEXIS 115023).



Judge Appoints Retirement System As Lead Plaintiff In Merger Deal Securities Suit
DETROIT - A federal judge in Michigan on Sept. 14 granted a shareholder's motion for appointment of lead plaintiff and lead counsel in a securities class action lawsuit, ruling that the shareholder has met all statutory requirements to serve in those roles (Livonia Employees' Retirement System v. Talmer Bancorp Inc., et al., No. 16-12229, E.D. Mich.; 2016 U.S. Dist. LEXIS 124417).



Government Seeks To Have New Insider-Trading Law Enacted, Defendant Argues
WASHINGTON, D.C. - The U.S. government seeks to have the U.S. Supreme Court create a new insider-trading tipping law for crimes allegedly committed before an inside trader's involvement in an insider-trading scheme, and the Supreme Court should overturn the trader's conviction, the trader argues in an Aug. 21 reply brief (Bassam Yacoub Salman v. United States of America, No. 15-628, U.S. Sup.).



Amici Ask 2nd Circuit To Endorse Price Impact Approach In Securities Suit
NEW YORK - The Second Circuit U.S. Court of Appeals should rule in favor of shareholders in an appeal of a securities class action lawsuit ruling and should require defendants to "show the absence of price impact by a preponderance of evidence" in rebutting a Basic Inc. v. Levinson presumption, a group of securities law professors argue in a Sept. 1 amicus curiae brief (In re Petrobas Securities Litigation, No. 16-1914, 2nd Cir.).



Defendants Seek Dismissal Of Claims Against Them In Securities Class Action
TRENTON, N.J. - Defendants in a securities class action lawsuit in New Jersey federal court separately moved to dismiss the claims against them on Sept. 13, arguing that shareholders failed to plead any actionable misrepresentation, scienter or loss causation in making their federal securities law claims (In re Valeant Pharmaceuticals International Inc. Securities Litigation, No. 15-7658, D. N.J.).



Medical Device Maker Seeks Dismissal Of Securities Fraud Class Action Claims
NEW YORK - A securities class action lawsuit against a medical device maker and its CEO should be dismissed because the lead plaintiff has failed to show that the defendants made any material misrepresentations or acted with scienter in statements they made regarding the company's heart pump, the defendants argue in an Aug. 30 motion to dismiss (In re HeartWare International Inc. Securities Litigation, No. 16-0520, S.D. N.Y.).



Infrastructure Assets Design Company Sued For Alleged Securities Law Violations
LOS ANGELES - A shareholder filed a securities class action lawsuit against an infrastructure assets designer and certain of its current and former executive officers on Sept. 1 in California federal court, alleging that the defendants concealed issues with the company's business, operational and compliance policies in violation of federal securities laws (William Graves v. AECOM, et al., No. 16-6605, C.D. Calif.).



Investors Sue Companies, Others Over Securities Law Violations
A number of securities class action complaints have been filed in recent weeks. Some of those complaints include:



Barclays To Pay $100M To Settle Libor Manipulation Claims
NEW YORK - Barclays Bank PLC and Barclays Capital Inc. will pay $100 million to settle claims with 44 states that they engaged in fraudulent and anti-competitive conduction in manipulating the U.S. Dollar London Interbank Offered Rate (LIBOR) "and other benchmark interest rates," according to a press release issued on Aug. 8 by New York Attorney General Eric T. Schneiderman.



Drug Maker Agrees To Pay $95M To Settle Federal Securities Law Claims
LOS ANGELES - A drug maker will pay $95 million to settle claims that it misrepresented certain safety concerns with two of its products in violation of federal securities laws, according to a motion for preliminary approval of settlement filed July 21 in California federal court (In re Amgen Inc. Securities Litigation, No. 07-2536, C.D. Calif.).



Judge Grants Preliminary Approval Of $23.5M Securities Class Action Settlement
SAN FRANCISCO - A federal judge in California on July 18 granted preliminary approval of a $23.5 million settlement between shareholders and a semiconductor company and others in a securities class action lawsuit, appointing shareholders as class counsel and approving the proposed settlement class (Keith Thomas, et al. v. MagnaChip Semiconductor Corp., et al., No. 14-1160, N.D. Calif.).



Investors Appeal Dismissal Of Claims In Securities Class Action To 2nd Circuit
NEW YORK - Shareholders on July 25 filed a notice of appeal in a securities class action lawsuit against a pharmaceutical company and its former CEO, seeking Second Circuit U.S. Court of Appeals review of a federal judge's ruling dismissing the action for failure to plead an actionable misrepresentation, scienter or loss causation (In re Sanofi Securities Litigation, No. 16-2573, 2nd Cir.).



Judge: Lead Plaintiff Failed To Plead Elements Of Federal Securities Law Claim
SAN FRANCISCO - A lead plaintiff in a securities class action lawsuit has failed to plead an actionable misrepresentation, scienter or loss causation in making his federal securities law claims, a federal judge in California ruled Aug. 10 in granting the defendants' motions to dismiss (Likar Rok v. Identiv Inc., et al., No. 15-5775, N.D. Calif.).



Alleged Misstatements Were Forward-Looking, Nonactionable, Judge Rules
SANTA ANA, Calif. - Dismissal of claims in a securities class action lawsuit is proper because alleged false and misleading statements made by a quick-service restaurant chain, several of its executive officers and directors and others in a 2015 press release were forward-looking and protected under the safe harbor provision of the Private Securities Litigation Reform Act (PSLRA) or were mere puffery and were nonactionable, a federal judge in California ruled July 25 (Daniel Turocy v. El Pollo Loco Holdings Inc., et al., No. 15-1343, C.D. Calif.).



Panel Reverses Own Ruling In Ponzi Scheme Suit On Guidance From State High Court
NEW ORLEANS - Following guidance from the Texas Supreme Court, a Fifth Circuit U.S. Court of Appeals panel on Aug. 22 affirmed a lower court's ruling that granted summary judgment in favor of The Golf Channel Inc. in a clawback lawsuit stemming from the R. Allen Stanford Ponzi scheme, ruling that the Supreme Court's ruling clarified the "reasonably equivalent value" standard established under the Texas Uniform Fraudulent Transfer Act (TUFTA) (Ralph S. Janvey v. The Golf Channel Inc., No. 13-11305, 5th Cir.; 2016 U.S. App. LEXIS 15407).



Defendants Misrepresented Roles In Medicare Revenue Fraud Scheme, Judge Rules
BATON ROUGE, La. - Lead plaintiffs in a securities class action lawsuit have shown that a home health services provider and certain of its current and former executive officers issued material misrepresentations concealing certain information regarding their participation in fraudulent Medicare practices in violation of federal securities law, a federal judge in Louisiana ruled Aug. 19 in granting in part and denying in part the defendants' motion to dismiss (Robert F. Bach, et al. v. Amedisys Inc., et al., No. 10-0395, M.D. La.; 2016 U.S. Dist. LEXIS 111077).



Failure To Cure Pleading Deficiencies Leads To Dismissal Of Securities Suit
SAN JOSE, Calif. - The lead plaintiff in a securities class action lawsuit against a company that sells renewable energy and certain of its executive officers has failed to cure each of the scienter pleading deficiencies in making his claims under federal securities law that resulted in three previous dismissal rulings, a federal judge in California ruled Aug. 9 in dismissing the third amended complaint with prejudice (Tai Jan Bao, et al. v. SolarCity Corp., et al., No. 14-1435, N.D. Calif.; 2016 U.S. Dist. LEXIS 105179).



2nd Circuit Remands Securities Class Action For Consideration Of New Evidence
NEW YORK - Although a federal district court did not err in dismissing a federal securities class action complaint against BlackBerry Limited and certain of its former executive officers for failure to plead scienter, it is unclear whether newly discovered evidence submitted by lead plaintiffs was insufficient to determine whether the court properly denied their motion for reconsideration, a Second Circuit U.S. Court of Appeals panel ruled Aug. 24 (Todd Cox, et al. v. BlackBerry Limited, et al., No. 15-3991, 2nd Cir.).



Judge: Investors Pleaded Falsity, Scienter In Making Securities Law Claims
BROOKLYN, N.Y. - Dismissal of an amended complaint in a securities class action lawsuit is not proper because the lead plaintiffs have pleaded falsity, materiality and scienter in making their federal securities law claims by arguing that a research manufacturing company and certain of its current and former executive officers concealed issues relating to a power failure at one of the company's laboratories, a federal judge in New York ruled July 26 (John Gauquie v. Albany Molecular Research Inc., et al., No. 14-6637, E.D. N.Y.; 2016 U.S. Dist. LEXIS 97295).



Judge: Investors Failed To Plead Scienter Against Medical Device Maker, Others
BOSTON - Dismissal of an amended complaint is proper, a federal judge in Massachusetts ruled Aug. 3, because lead plaintiffs failed to plead any material misrepresentation or scienter in making their federal securities law claims against a medical device company and certain of its executive officers (William M. Cody, et al. v. ConforMIS Inc., et al., No. 15-13295, D. Mass.).



SEC Administrative Law Judges Not Unconstitutional, D.C. Circuit Panel Rules
WASHINGTON, D.C. - A District of Columbia Circuit U.S. Court of Appeals panel on Aug. 9 held that the Securities and Exchange Commission's appointment of in-house administrative law judges does not violate provisions of the appointments clause of the U.S. Constitution, and the SEC did not abuse its discretion in imposing a lifetime ban on investment advisers for their role in a scheme to violate provisions of the Advisers Act by misrepresenting backtested returns of financial investment portfolios using the advisers proprietary strategy (Raymond J. Lucia Companies Inc., et al. v. Securities and Exchange Commission, No. 15-1345, D.C. Cir.; 2016 U.S. App. LEXIS 14559).



New York Justice Won't Dismiss Coverage Suit Arising From Bear Stearns' Settlement
NEW YORK - A New York justice on July 7 refused to dismiss a lawsuit seeking indemnification from insurers for claims stemming from Bear Stearns' settlement of Securities and Exchange Commission and New York Stock Exchange (NYSE) regulatory proceedings and private litigation over claims that it facilitated customers' deceptive market timing and late trading activities (J.P. Morgan Securities, et al. v. Vigilant Insurance, et al., No. 600979/2009, N.Y. Sup., New York Co.).



Judge Certifies Class In Securities Suit Against Payday Lender, Others
PHILADELPHIA - A federal judge in Pennsylvania on Aug. 4 granted a motion for class certification in a securities class action lawsuit against a British payday lender and certain of its current and former executive officers and directors, ruling that lead plaintiffs have met all statutory requirements necessary to certify the class (West Palm Beach Police Pension Fund v. DFC Global Corp., et al., No. 13-6731, E.D. Pa.; 2016 U.S. Dist. LEXIS 102304).



Shareholder Failed To Plead Falsity With Requisite Particularity, Judge Rules
LOS ANGELES - A shareholder has failed to plead falsity with the requisite particularity in making his federal securities law claims against an Internet content provider, a federal judge in California ruled Aug. 15 in dismissing the shareholder's claims against the company (Guangyi Xu v. ChinaCache International Holdings Ltd., et al., No. 15-7952, C.D. Calif.; 2016 U.S. Dist. LEXIS 108629).



Judge Rejects Investors' Reconsideration Requests In Shareholder Derivative Suit
PHOENIX - A federal judge in Arizona on Aug. 4 refused to reconsider his ruling that granted a motion to dismiss in a shareholder derivative lawsuit against several current and former officers and directors of a solar panel maker, finding that investors could have made the arguments earlier and "do not provide a basis for reconsideration" (In re First Solar Derivative Litigation, No. 12-0769, D. Ariz.; 2016 U.S. Dist. LEXIS 102649).



Securities Class Action Filings Well Above Historical Average, Report Shows
BOSTON - Federal securities class action filings climbed to higher than historical averages in the first half of 2016, up 27 percent from the semiannual average observed between 1997 and 2015, according to a semiannual report released July 26 by economic and financial consulting firm Cornerstone Research.



Parties Debate Reach Of Dirks For Insider- Trading Claims
WASHINGTON, D.C. - The U.S. government and a convicted inside trader debated recently whether the U.S. Supreme Court's ruling in Dirks v. SEC (463 U.S. 646 [1983]) extends to limiting insider trading under Section 10(b) of the Securities Exchange Act of 1934 and tipping liability to situations where the tipper sought to make money from the fraud in merits briefs filed in the Supreme Court (Bassam Yacoub Salman v. United States of America, No. 15-628, U.S. Sup.; 2016 U.S. S. Ct. Briefs LEXIS 2815).



Investors Failed To Show That Class Is Ascertainable, Underwriter Defendants Say
NEW YORK - A federal district court erred in certifying a class of investors in a securities class action lawsuit because shareholders failed to show that the class is "ascertainable" and because the shareholders failed to plead the superiority and predominance prongs of Federal Rule of Civil Procedure 23 in moving for class certification, underwriter defendants argue in an appellant brief filed in the Second Circuit U.S. Court of Appeals on July 25 (In re Petrobas Securities Litigation, No. 16-1914, 2nd Cir.).



Defendants: Opposition Brief Undercuts Complaint's Loss Causation Allegations
BROOKLYN, N.Y. - Arguments made by shareholders in their opposition to a motion to dismiss in a securities class action lawsuit undercut the scienter and loss causation allegations they made in their complaint, defendants argue in an Aug. 9 reply brief (Saleh Altayyar, et al. v. Etsy Inc., et al., No. 15-2785, E.D. N.Y.).



Investors Failed To Plead Elements Of Their Securities Claims, Shkreli Argues
SAN FRANCISCO - Dismissal of claims against former KaloBios Pharmaceuticals Inc. CEO Martin Shkreli is proper because the lead plaintiffs have failed to plead reliance and because Shkreli's allegedly false and misleading statements did not trigger a duty to disclose any alleged omissions, Shkreli argues in an Aug. 16 motion to dismiss (Kang Li v. KaloBios Pharmaceuticals Inc., et al., No. 15-5841, N.D. Calif.).



Shareholder Seeks To Enjoin Proposed Merger Deal In Securities Class Action
SANTA ANA, Calif. - A shareholder filed a securities class action complaint in California federal court on July 22, seeking to enjoin a proposed merger and acquisition transaction because it "is the result of an unfair process and provides the Company's stockholders with inadequate consideration" (Stephen Bushansky v. QLogic Corp., et al., No. 16-1363, C.D. Calif.).



SEC: Merrill Lynch To Pay $415M To Settle Claims It Misused Customer Cash
WASHINGTON, D.C. - Merrill Lynch, Pierce, Fenner & Smith Inc. has agreed to pay $415 million to settle claims that it engaged in a scheme whereby it misused customer cash to generate profits for Merrill Lynch and failed to "safeguard customer securities from the claims of its creditors" in violation of federal securities laws, according to a press release issued by the Securities and Exchange Commission on June 23 (In the Matter of Merrill Lynch, Pierce, Fenner & Smith Inc., et al., No. 3-17312, SEC).



Judge: SEC's Request For Default Judgment Meets 9th Circuit Requirements
LOS ANGELES - A federal judge in California on July 8 granted the Securities and Exchange Commission's motion for entry of default judgment in an enforcement action, ruling that the commission met the requirements set in Ninth Circuit U.S. Court of Appeals precedent for such a ruling (Securities and Exchange Commission v. Robert Seibert, a.k.a. John Gray, No. 15-9331, C.D. Calif.; 2016 U.S. Dist. LEXIS 90300).



Judge: No Manifest Errors Of Law Exist In Securities Suit Ruling
DALLAS - Ruling that defendants in a Securities and Exchange Commission civil enforcement action have failed to show that a federal district court committed manifest errors of law or fact, a federal judge in Texas on July 13 denied the defendants' motion for reconsideration of his ruling granting summary judgment in favor of the SEC (Securities and Exchange Commission v. Arcturus Corp., et al., No. 13-4861, N.D. Texas; 2016 U.S. Dist. LEXIS 88410).



Defendants To Pay $64M To Settle Claims In Long-Running Securities Suit
TOLEDO, Ohio - Defendants in a long-running securities class action lawsuit will pay $64 million to settle claims that they misrepresented a company's business and financial condition in violation of federal securities laws, according to a motion for preliminary approval of settlement filed in Ohio federal court on July 14 (Plumbers & Pipefitters National Pension Fund, et al. v. Michael Burns, et al., No. 05-7393, N.D. Ohio).



Judge: Investors Failed To Plead Misrepresentation, Scienter In Securities Suit
NEW YORK - A federal judge in New York on July 6 dismissed a second amended complaint filed against the former CEO of an Australian drug company, ruling that lead plaintiffs failed to plead an actionable misrepresentation and scienter in making their federal securities law claims (Marsha Gillis, et al. v. QRX Pharma Ltd., et al., No. 15-4868, S.D. N.Y.; 2016 U.S. Dist. LEXIS 87489).



Judge: Lead Plaintiff Failed To Plead Materiality In Securities Class Action
NEW YORK - A federal judge in New York on July 6 dismissed a securities class action lawsuit against a Mexican aviation company and others, ruling that the lead plaintiff in the action failed to properly plead materiality in making its federal securities law claims (Dekalb County Employees Retirement System v. Contraloardora Vuela Compania de Aviacion S.A.B. de C.V., et al., No. 15-1337, S.D. N.Y.; 2016 U.S. Dist. LEXIS 87235).



Judge Denies Defendants' Request For Stay In Securities Class Action Suit
NEW YORK - Defendants in a securities class action lawsuit have failed to show that a stay of the proceedings is necessary pending an appeal of a New York federal judge's ruling granting the lead plaintiffs' motion for class certification, the judge ruled July 5 (Barbara Strougo v. Barclays plc, et al., No. 14-5797, S.D. N.Y.).



Pension Funds Appointed As Co-Lead Plaintiffs In Securities Class Action
PORTLAND, Ore. - Without providing further detail, a federal judge in Oregon on July 13 appointed two pension funds as lead plaintiffs in a securities class action lawsuit against a metal components manufacturer and two of its executive officers (Kevin Murphy v. Precision Castparts Corp., et al., No. 16-0521, D. Ore.).



Institutional Investor Appointed Lead Plaintiff In Securities Class Action
SAN JOSE, Calif. - Appointment of an institutional investor as lead plaintiff in a securities class action lawsuit is proper because the investor has met all statutory requirements to serve in the role and because no other investor has properly rebutted the presumption that the institutional investor is the most adequate lead plaintiff, a federal judge in California ruled June 28 (In re Extreme Networks Inc. Securities Litigation, No. 15-4883, N.D. Calif.; 2016 U.S. Dist. LEXIS 84005).



Judge: Amended Complaint Fails To Cure Pleading Deficiencies In Securities Suit
NEW YORK - A federal judge in New York on June 24 denied a motion to alter or amend judgment and for leave to file a second amended complaint in a securities class action lawsuit, ruling that any amendment would be futile because the shareholders' additional evidence does not cure any of the pleading deficiencies that led to dismissal of the previous amended complaint (In re Sanofi Securities Litigation, No. 14-9624, S.D. N.Y.; 2016 U.S. Dist. LEXIS 82453).



Pension Fund Named Lead Plaintiff In Apollo Education Group Securities Suit
PHOENIX - A federal judge in Arizona on June 16 appointed a retirement fund as lead plaintiff in a securities class action lawsuit against a for-profit education company and several of its current and former executive officers, ruling that the fund has met all statutory requirements to serve in the role (Rameses Te Lomingkit, et al. v. Apollo Education Group Inc., et al., No. 16-0689, D. Ariz.; 2016 U.S. Dist. LEXIS 78591).



Motion To Stay In Securities Suit Fails To Meet Nken Factors, Judge Rules
NEW YORK - A federal judge in New York on June 24 denied a motion for a stay in a securities class action lawsuit and several related actions, ruling that the defendants' motion fails to meet the guidelines established in the U.S. Supreme Court's ruling in Nken v. Holder (In re Petrobas Securities Litigation, No. 14-9662, S.D. N.Y.; 2016 U.S. Dist. LEXIS 82426).



Lead Plaintiffs Failed To Plead Scienter Against Drug Maker, Others, Judge Rules
TRENTON, N.J. - A federal judge in New Jersey on June 20 granted a motion to dismiss filed by defendants in a securities class action lawsuit, ruling that lead plaintiffs failed to properly plead scienter in making claims that the defendants misrepresented the clinical trial success of a glaucoma drug in violation of federal securities laws (Henry A. and Wilma Kelley v. Aerie Pharmaceuticals Inc., et al., No. 15-3007, D. N.J.; 2016 U.S. Dist. LEXIS 79595).



Lead Plaintiffs Failed To Plead Demand Futility In Derivative Suit, Panel Rules
DENVER - A federal district court did not err in granting a motion to dismiss in a shareholder derivative action because the lead plaintiffs failed to plead demand futility, a 10th Circuit U.S. Court of Appeals panel ruled June 20 (In re ZAGG Inc. Shareholder Derivative Litigation, No. 15-4001, 10th Cir.; 2016 U.S. App. LEXIS 11095).



Judge: Tipper Breached Her Fiduciary Duty To Employer In Insider Trading Suit
BOSTON - The Securities and Exchange Commission has properly alleged that a day trader's tipper in an insider trading lawsuit breached her fiduciary duty to her employer in providing inside information regarding a merger deal, a federal judge in Massachusetts ruled in a July 12 opinion (Securities and Exchange Commission v. Vlad B. Spivak, et al., No. 15-13704, D. Mass.).



Lead Plaintiff Properly Cured Loss Causation Pleading Deficiencies, Judge Rules
SAN DIEGO - A federal judge in California on July 12 substantially denied a motion to dismiss filed by defendants in a securities class action lawsuit, ruling that the lead plaintiff in the action properly pleaded loss causation in making his federal securities law claims (Brad Mauss v. NuVasive Inc., et al., No. 13-2005, S.D. Calif.; 2016 U.S. Dist. LEXIS 90412).



Securities Suit Must Be Tried In Washington Federal Court, Judge Rules
SALT LAKE CITY - A federal judge in Utah on July 11 denied motions to dismiss a securities lawsuit filed by Chinese investors against parties to an escrow agreement but ruled that the transfer of the action to Washington federal court was necessary under the terms of a forum-selection clause in the escrow agreement (Chi Chen, et al. v. U.S. Bank National Association, et al., Nos. 15-850 and 15-851, D. Utah; 2016 U.S. Dist. LEXIS 89764).



Judge: Facebook IPO Class Action Claims Fall Under Professional Services Exclusion
NEW YORK - A New York federal judge on July 12 held that a directors and officers liability insurance policy's professional services exclusion unambiguously bars coverage for claims in an underlying Facebook IPO class action lawsuit but refused to grant summary judgment to the primary D&O insurer on a breach of contract claim involving the advancement of underlying defense costs (Beazley Insurance Co. Inc. v. ACE American Insurance Co., et al., No. 15-5119, S.D. N.Y.; 2016 U.S. Dist. LEXIS 90332).



Panel's Securities Suit Ruling Does Not Conflict With Circuits, Defendants Say
WASHINGTON, D.C. - The U.S. Supreme Court should deny review of an appeal of an 11th Circuit U.S. Court of Appeals panel's ruling affirming a state court order in a securities class action lawsuit that determined that a jury instruction improperly stated the law governing a federal securities fraud claim because the petitioner has failed to show that any split among the circuits exists, defendants argue in a July 6 opposition brief (Richard I. Fried v. Stiefel Laboratories Inc., et al., No. 15-1458, U.S. Sup.; 2016 U.S. S. Ct. Briefs 2601).



Parties Debate Whether Emergency Stay Is Required In Securities Class Action
NEW YORK - An emergency stay of proceedings in a securities class action lawsuit is not proper because the defendants' reason for seeking the stay have already been rejected by a federal district court judge, shareholders argue in an opposition brief filed July 8 in the Second Circuit U.S. Court of Appeals (In re Petrobas Securities Litigation, No. 16-1914, 2nd Cir.).



Defendants' Arguments In Favor Of Dismissal Lack Merit, Shareholders Say
BROOKLYN, N.Y. - Defendants in a securities class action lawsuit have failed to show that dismissal is warranted because their arguments in favor of dismissal "lack merit," shareholders argue in a July 11 opposition brief filed in New York federal court (Saleh Altayyar, et al. v. Etsy Inc., et al., No. 15-2785, E.D. N.Y.).



Investors Failed To Plead Elements Of Securities Law Claims, Defendants Say
SAN DIEGO - Dismissal of a second amended complaint in a securities class action lawsuit against SeaWorld Entertainment Inc., certain of its current and former executive officers and the company's majority shareholder is proper because lead plaintiffs have failed to plead any actionable misrepresentation or omission, scienter or loss causation in making their federal securities law claims, the defendants argue in a June 29 motion to dismiss (Lou Baker v. SeaWorld Entertainment Inc., et al., No. 14-2129, S.D. Calif.).



Investor Argues It Properly Pleaded All Elements Of Its Securities Law Claims
PITTSBURGH - Dismissal of a securities class action lawsuit is not proper because the lead plaintiff in the action has properly pleaded a material misrepresentation or omission, scienter and loss causation, the lead plaintiff argues in a June 20 opposition brief filed in Pennsylvania federal court (James Martin v. GNC Holdings Inc., et al., No. 15-1522, W.D. Pa.).



Pension Fund Sues REIT, Others Over Alleged Misstatements
CHATTANOOGA, Tenn. - A pension plan filed a securities class action complaint in a Tennessee federal court on June 23, arguing that a real estate investment trust (REIT) and certain current and former executive officers misrepresented the REIT's business and operations in violation of federal securities laws (International Union of Painters & Allied Trades District Council No. 35 Pension Plan v. CBL & Associates Properties Inc., et al., No. 16-0248, E.D. Tenn.).