Mealey's Securities

  • April 20, 2017

    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.).

  • April 18, 2017

    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.).

  • April 18, 2017

    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.).

  • April 17, 2017

    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).

  • April 14, 2017

    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.

  • April 14, 2017

    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).

  • April 14, 2017

    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).

  • April 14, 2017

    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).

  • April 13, 2017

    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.).

  • April 12, 2017

    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.).

  • April 12, 2017

    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.).

  • April 11, 2017

    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).

  • April 10, 2017

    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).

  • April 6, 2017

    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).

  • April 5, 2017

    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.).

  • April 5, 2017

    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).

  • April 3, 2017

    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).

  • March 31, 2017

    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.).

  • March 31, 2017

    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).

  • March 30, 2017

    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).