Mealey's Securities

  • May 23, 2017

    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).

  • May 19, 2017

    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).

  • May 18, 2017

    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.).

  • May 18, 2017

    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.).

  • May 17, 2017

    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).

  • May 16, 2017

    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 their 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).

  • May 12, 2017

    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).

  • May 12, 2017

    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).

  • May 12, 2017

    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.).

  • May 12, 2017

    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.).

  • May 12, 2017

    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.).

  • May 12, 2017

    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).

  • May 12, 2017

    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.).

  • May 12, 2017

    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.).

  • May 12, 2017

    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.

  • May 12, 2017

    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).

  • May 10, 2017

    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).

  • May 9, 2017

    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).

  • May 9, 2017

    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).

  • May 8, 2017

    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).