Mealey's Securities

  • February 23, 2017

    Panel: Alleged Misstatements In Securities Class Action Were Forward-Looking

    CINCINNATI — A federal district court did not err in dismissing a securities class action lawsuit because shareholders failed to plead scienter and the defendants’ alleged misleading statements were forward-looking and protected, a Sixth Circuit U.S. Court of Appeals panel ruled Feb. 21 in affirming (IBEW Local No. 58 Annuity Fund, et al. v. EveryWare Global Inc., et al., No. 16-3445, 6th Cir., 2017 U.S. Dist. LEXIS 2925).

  • February 22, 2017

    High Court Denies Cert In Stock-Drop Case Arising Under ERISA

    WASHINGTON, D.C. — The U.S. Supreme Court on Feb. 21 denied a petition for writ of certiorari in a stock-drop case arising under the Employee Retirement Income Security Act (Alex E. Rinehart, et al. v. John F. Akers, et al., No. 16-562, U.S. Sup.).

  • February 17, 2017

    Drug Makers, Facebook Among Parties Named In Securities Class Actions

    Recent securities class action lawsuits filed in federal courts across the country include complaints alleging misrepresentations by officers and directors of various pharmaceutical companies, social media network Facebook Inc., financial institutions and a mining company.

  • February 17, 2017

    Trades Council Appointed Lead Plaintiff In Securities Class Action Lawsuit

    SAN FRANCISCO — A shareholder has met all statutory requirements to serve as lead plaintiff in a securities class action lawsuit against a pharmaceutical company and certain current and former executive officers over their alleged misrepresentations concerning their involvement in a generic drug price-fixing scheme in violation of federal securities laws, a federal judge in California ruled Feb. 15 (Greg Fleming v. Impax Laboratories Inc., et al., No. 16-6557, N.D. Calif., 2017 U.S. Dist. LEXIS 22147).

  • February 17, 2017

    Parties Debate Whether Lead Plaintiffs Properly Pleaded Loss Causation

    CINCINNATI — Parties in a securities class action lawsuit recently asked the Sixth Circuit U.S. Court of Appeals to determine whether a federal district court erred in dismissing the lead plaintiffs’ amended complaint for failure to plead loss causation (Norfolk County Retirement System v. Community Health Systems Inc., et al., No. 16-6059, 6th Cir.).

  • February 17, 2017

    Investors: Defendants Failed To Bring Question Presented In Lower Court Actions

    WASHINGTON, D.C. — A defense technology company failed to bring its question presented on appeal to the U.S. Supreme Court in the federal district court securities class action brought against it or an appeal in the action filed in the Second Circuit U.S. Court of Appeals and, thus, cannot bring the question in the appeal to the Supreme Court, lead plaintiffs argue in a Feb. 8 respondent’s brief (Leidos Inc., v. Indiana Public Retirement System, et al., No. 16-581, U.S. Sup., 2016 U.S. S. Ct. Briefs LEXIS 4389).

  • February 17, 2017

    1st Circuit Asked To Decide Whether Court Properly Dismissed Securities Claims

    BOSTON — Parties in a securities class action lawsuit against a drug maker and certain of its executive officers recently asked the First Circuit U.S. Court of Appeals to determine whether a federal district court erred in dismissing the lead plaintiff’s amended complaint for failure to plead scienter and abused its discretion in denying the lead plaintiff’s motion to vacate the dismissal order (In re Biogen Inc. Securities Litigation, No. 16-1976, 1st Cir.).

  • February 17, 2017

    Judge: Investors State No Actionable Misrepresentations In Securities Class Action

    HOUSTON — Dismissal of a securities class action lawsuit is proper, a federal judge in Texas ruled Feb. 14, because lead plaintiffs failed to plead any actionable misrepresentations or scienter in arguing that an offshore energy services company and certain of its current and former executive officers misrepresented repair issues with one of the company’s well intervention vessels in violation of federal securities laws (Parvis Izadjoo v. Helix Energy Solutions Group Inc., et al., No. 15-2213, S.D. Texas, 2017 U.S. Dist. LEXIS 20444).

  • February 16, 2017

    Investor Failed To Show Lack Of Disclosures Violated Securities Act, Judge Rules

    NEW YORK — A lead plaintiff in a securities class action lawsuit against a business intelligence and marketing automation software service provider, certain of its executive officers and underwriters of the company’s initial public offering (IPO) failed to show that the defendants violated federal securities law by failing to disclose certain trends in its customer concentration and sales growth, a federal judge in New York ruled Feb. 13 in granting the defendants’ motions to dismiss (Andrew D. Nguyen v. MaxPoint Interactive Inc., et al., No. 15-6880, S.D. N.Y., 2017 U.S. Dist. LEXIS 20069).

  • February 14, 2017

    Judge Substantially Denies Dismissal Of Claims In Securities Class Action

    DENVER — Shareholders have pleaded a majority of their claims against defendants in a securities class action lawsuit against a drug maker, certain of its current and former executive officers and others, a federal judge in Colorado found Feb. 9 in ruling on three different dismissal motions (Sonny P. Medina, et al. v. Clovis Oncology Inc., et al., No. 15-2546, D. Colo., 2017 U.S. Dist. LEXIS 18795).

  • February 13, 2017

    Judge: Investors’ Commodities Exchange Act Claims Don’t Meet Morrison Standard

    NEW YORK — A federal judge in New York on Feb. 8 dismissed an amended complaint filed by investors who alleged that a financial services firm and its CEO engaged in a scheme to manipulate prices at which certain futures contracts traded on the Chicago Mercantile Exchange Global Platform (CME Globex), ruling that the investors failed to show that the alleged transactions took place on an American exchange as required pursuant to U.S. Supreme Court precedent in Morrison v. National Australia Bank, Ltd. (Myun-Uk Choi, et al. v. Tower Research Capital LLC, et al., No. 14-9912, S.D. N.Y., 2017 U.S. Dist. LEXIS 18174).

  • February 13, 2017

    Judge: Pension Funds Failed To Show That Company Misstated Financial Condition

    WEST PALM BEACH, Fla. — Two pension funds failed to plead any material misrepresentations or omissions or scienter in arguing that a company and certain of its executive officers issued misstatements regarding the company’s financial condition in the wake of an industry downturn, a federal judge in Florida ruled Feb. 8 in granting the defendants’ motion to dismiss (In re KLX Inc. Securities Litigation, No. 16-80023, S.D. Fla., 2017 U.S. Dist. LEXIS 17764).

  • February 13, 2017

    Trader, CEO Concealed Subsidiary’s Fraudulent Scheme, Investor Argues

    NEW YORK — An online foreign exchange trading services provider and its CEO concealed that the company’s American subsidiary had engaged in “false and misleading solicitations of its foreign exchange customers” in violation of federal securities laws, an investor argues in a Feb. 8 securities class action complaint filed in New York federal court (Ying Zhao v. FXCM Inc., et al., No. 17-0955, S.D. N.Y.).

  • February 10, 2017

    Judge Dismisses Investor Suit After Investor Fails To Plead Misrepresentation

    SAN JOSE, Calif. — An investor has failed to plead a material misrepresentation or omission or scienter in making his federal securities law claims against two companies that were subject to an acquisition deal, a federal judge in California ruled Jan. 31 in granting the defendants’ motion to dismiss with leave to amend (Scott Weller v. Scout Analytics Inc., et al., No. 15-3170, N.D. Calif., 2017 U.S. Dist. LEXIS 14197).

  • February 10, 2017

    Parties Debate District Court’s Ruling Dismissing Securities Class Action Suit

    ST. PAUL, Minn. — Parties in a securities class action lawsuit against a technology company and certain of its current and former executive officers and directors recently urged the Eighth Circuit U.S. Court of Appeals to consider whether a federal district court erred in dismissing the lead plaintiffs’ amended complaint for failure to plead any material misrepresentation or omission or scienter (In re Stratasys Ltd. Shareholder Securities Litigation, No. 16-3264, 8th Cir.).

  • February 9, 2017

    Biopharma Programmer Arrested For Trading On Insider Information

    BOSTON — A former programmer for a Massachusetts biopharmaceutical company was charged Feb. 7 with insider trading for conspiring to commit securities fraud by trading insider information about successful drug trials (United States of America v. Songjiang Wang, No. 17-1005, D. Mass.).

  • February 9, 2017

    Federal Judge Won’t Dismiss Common-Law Securities Fraud Claim

    WILMINGTON, Del. — Several current and former executive officers and directors of an electric carmaker used “the wrong procedural tool” in arguing on behalf of dismissal of a common-law securities fraud claim against them, a federal judge in Delaware ruled Feb. 7 in denying a pair of dismissal motions (In re Fisker Automotive Holdings Inc. Shareholder Litigation, No. 13-2100, D. Del., 2017 U.S. Dist. LEXIS 16683).

  • February 9, 2017

    Defendant In SEC Suit Knew Of Complaint Filed Against Him, Judge Rules

    MIAMI — A federal judge in Florida on Jan. 25 denied a defendant’s motion to set aside a default judgment in a securities fraud lawsuit filed by the Securities and Exchange Commission, ruling that the defendant was aware of the action against him but failed to file the motion within the deadlines set in court orders (Securities and Exchange Commission v. OTC Capital Partners LLC, et al., No. 16-20270, S.D. Fla., 2017 U.S. Dist. LEXIS 12438).

  • February 3, 2017

    Report Show Massive Increase In Securities Class Action Filings In 2016

    BOSTON — Federal securities class action filings hit record highs in 2016, up more than 40 percent of the average from 1997-2015, according to a report released Jan. 31 by economic and financial consulting firm Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse.

  • February 3, 2017

    Judge Appoints Lead Plaintiffs In Tyson Foods Securities Class Action

    FAYETTEVILLE, Ark. — A pension fund and two investment funds have met all statutory requirements to serve as lead plaintiffs in a securities class action lawsuit against Tyson Foods Inc. and certain of its current and former executive officers, a federal judge in Arkansas ruled Jan. 25 in appointing the shareholders as lead plaintiffs and naming their choice of counsel as lead counsel (In re Tyson Foods Inc. Securities Litigation, No. 16-5340, W.D. Ark., 2017 U.S. Dist. LEXIS 10212).