Mealey's Securities

  • October 18, 2017

    Prosecutors Argue Against Telling Jurors About Shkreli’s Partial Acquittal

    BROOKLYN, N.Y. — Jurors in the criminal proceedings against alleged co-conspirator to convicted former pharmaceutical company CEO Martin Shkreli’s massive securities fraud scheme Evan Greebel should not be made aware of Shkreli’s acquittal on conspiracy to commit wire fraud charges, federal prosecutors argued Oct. 16 in an opposition to Greebel’s request to disclose the information (United States of America v. Evan Greebel, No. 15-cr-0637, E.D. N.Y.).

  • October 18, 2017

    High Court Removes Securities Suit Oral Arguments From Calendar

    WASHINGTON, D.C. — The U.S. Supreme Court on Oct. 17 removed from the calendar oral arguments in an appeal of a securities class action ruling regarding Securities and Exchange Commission Regulation S-K Item 303’s duty to disclose provision for federal securities law claims and stayed the action after the parties stated that they have reached a settlement (Leidos Inc., v. Indiana Public Retirement System, et al., No. 16-581, U.S. Sup.).

  • October 17, 2017

    Panel: Court Properly Dismissed Securities Suit For Failure To Plead Scienter

    NEW YORK — A federal district court did not err in dismissing a securities class action lawsuit for failure to plead scienter because the lead plaintiff in the action failed to plead motive, conscious misbehavior or recklessness on the part of the defendants in making his federal securities law claims, a Second Circuit U.S. Court of Appeals panel ruled Oct. 13 in affirming (Christopher Wyche v. Advanced Drainage Systems Inc., et al., No. 17-743, 2nd Cir., 2017 U.S. App. LEXIS 20056).

  • October 17, 2017

    Federal Securities Claims Against Off-Road Vehicle Manufacturer Dismissed

    MINNEAPOLIS — A pension fund failed to plead any actionable misstatements or omissions or scienter in arguing that off-road vehicle (ORV) manufacturer Polaris Industries Inc. and certain of its current and former executive officers concealed certain defects in its products that led to recalls of certain models of ORVs in violation of federal securities laws, a federal judge in Minnesota ruled Oct. 13 in granting the defendants’ motion to dismiss (In re Polaris Industries Inc. Securities Litigation, No. 16-3108, D. Minn.).

  • October 13, 2017

    High Court’s Determination Of Standard Of Review In Derivative Action Sought

    WASHINGTON, D.C. — Review of an Eighth Circuit U.S. Court of Appeals panel ruling in a shareholder derivative lawsuit brought on behalf of a medical device maker over the company’s alleged involvement in an illegal off-market labeling scheme for one of its devices is necessary to cure a split among the circuit courts as to the proper standard of review for a shareholder derivative action based on a federal district court’s dismissal of the action after the issuance of a special litigation committee’s (SLC) report, an investor argues in a Sept. 8 petition for writ of certiorari filed in the U.S. Supreme Court (Charlotte Kokocinski, derivatively on behalf of Medtronic Inc., v. Arthur Collins Jr., et al., No. 17-375, U.S. Sup., 2017 U.S. S. Ct. Briefs 3478).

  • October 13, 2017

    Amex Shareholder Class Action Over Alleged Misrepresentations Dismissed

    NEW YORK — A pension fund failed to show that a credit card company and certain of its executive officers violated federal securities laws by failing to disclose known trends and uncertainties and other adverse facts concerning its co-brand agreement negotiations with an international retailer, a federal judge in New York ruled Sept. 30 in dismissing the pension fund’s amended class complaint for failure to plead any actionable misrepresentations or scienter (Plumbers and Steamfitters Local 137 Pension Fund v. American Express Co., et al., No. 15-5999, S.D. N.Y., 2017 U.S. Dist. LEXIS 162399).

  • October 13, 2017

    Magistrate Judge Recommends That Dismissal Of Merger Deal Suit Be Denied

    PORTLAND, Ore. — Lead plaintiffs in a securities class action against a company and its board of directors have shown that the defendants misrepresented the value of the company in a proxy statement for a proposed acquisition deal and acted with the requisite scienter in doing so, a federal magistrate judge ruled Oct. 3, recommending that the defendant’s motion to dismiss be denied (NECA-IBEW Pension Trust Fund [The Decatur Plan], et al. v. Precision Castparts Corp., et al., No. 16-1756, D. Ore., 2017 U.S. LEXIS 165139).

  • October 13, 2017

    Institutional Investor Appointed As Lead Plaintiff In Securities Class Action

    BROOKLYN, N.Y. — A federal judge in New York on Oct. 6 ruled that an institutional investor has met all statutory requirements to serve as lead plaintiff in a securities class action against a Brazilian meat processor and seller and certain of its executive officers for alleged violations of federal securities laws in connection with an alleged bribery scheme with Brazilian government officials and others (Edmund Murphy III v. JBS S.A., et al., No. 17-3084, E.D. N.Y., 2017 U.S. Dist. LEXIS 166262).

  • October 13, 2017

    1st Circuit Denies Rehearing In Securities Suit Against Drug Company

    BOSTON — The First Circuit U.S. Court of Appeals denied a petition for rehearing and rehearing en banc in a securities class action filed by a pharmaceutical company’s shareholders who alleged that the company and certain of its executive officers misrepresented the likelihood of U.S. Food and Drug Administration (FDA) approval for its Duchenne muscular dystrophy treatment drug in violation of federal securities law (Mark A. Corban v. Sarepta Therapeutics Inc., et al., No. 14-10201, D. Mass.).

  • October 13, 2017

    Investors Found To Have Pleaded Control-Person Liability In Securities Suit

    HARTFORD, Conn. — Investors have properly pleaded each of their state and federal securities laws claims against the co-founder of a virtual currency mining company, a federal judge in Connecticut ruled Oct. 11 in denying the defendant’s motion to dismiss all claims against him (Denis M. Audet, et al. v. Stuart A. Fraser, et al., No. 16-0940, D. Conn., 2017 U.S. Dist. LEXIS 167830).

  • October 12, 2017

    Judge Grants Preliminary Approval Of $28.5M Settlement In IPO Suit

    NEW YORK — A federal judge in New York on Oct. 11 granted preliminary approval of a $28.5 million securities class action settlement between shareholders and a global eCommerce company and others, ruling that the proposed settlement offer is fair, reasonable and adequate (In re Cnova N.V. Securities Litigation, No. 16-444, S.D. N.Y.).

  • October 10, 2017

    Government Allowed To Participate In Securities Suit Appeal Oral Arguments

    WASHINGTON, D.C. — The U.S. Supreme Court on Oct. 10 granted Acting Solicitor General Noel Francisco’s motion for leave to participate in oral arguments as amicus curiae and for divided argument in a securities class action lawsuit challenging a federal appellate court’s ruling that Item 303 of Securities and Exchange Commission Regulation S-K creates a duty to disclose that is actionable under federal securities law (Leidos Inc., v. Indiana Public Retirement System, et al., No. 16-581, U.S. Sup.).

  • October 6, 2017

    Investors Failed To Cure Pleading Deficiencies In Securities Suit, Judge Rules

    NEW YORK — Lead plaintiffs in a securities class action lawsuit against an asset management firm and certain of its executive officers and others have failed to cure any of the pleading deficiencies identified in a prior ruling on motions to dismiss federal securities law claims, a federal judge in New York ruled Sept. 29 in dismissing a second amended complaint with prejudice (Arthur Menaldi v. Och-Ziff Capital Management Group LLC, et al., No. 14-3251, S.D. N.Y.; 2017 U.S. Dist. LEXIS 163063).

  • October 4, 2017

    Parties Debate Whether Shkreli’s E-Trade Funds Should Be Released

    BROOKLYN, N.Y. — Former pharmaceutical company CEO and hedge fund manager Martin Shkreli and federal authorities recently debated whether the federal judge in New York overseeing Shkreli’s securities fraud and conspiracy criminal proceedings should exonerate his bail and vacate a restraining order on his investment account in letter briefs filed in the federal court (United States of America v. Martin Shkreli, No. 15-637, E.D. N.Y.).

  • October 4, 2017

    Cloud-Based Insurance Administrator Hit With Securities Class Actions

    Between Sept. 11 and Sept. 21, three shareholders filed separate but related securities class action lawsuits against a developer and administrator of cloud-based individual and family insurance plans and certain of its executive officers and directors in various federal courts.

  • October 4, 2017

    Review Of 9th Circuit’s Application Of American Pipe In Securities Suit Sought

    WASHINGTON, D.C. — U.S. Supreme Court review of a Ninth Circuit U.S. Court of Appeals’ ruling that a securities class action lawsuit was timely filed is necessary because there is a split among the federal circuit courts as to the proper application of the American Pipe & Construction Co. v. Utah tolling doctrine, a company argues in a Sept. 21 petition for writ of certiorari filed in the Supreme Court (China Agritech Inc. v. Michael Resh, et al., No. 17-432, U.S. Sup.).

  • October 4, 2017

    Securities Claims Against Indian Film Company Were Forward-Looking, Judge Rules

    NEW YORK — Lead plaintiffs have failed to show that an Indian film entertainment company and certain of its current and former executive officers and directors issued any material misrepresentations or omissions regarding its online film-streaming platform in violation of federal securities laws, a federal judge in New York ruled Sept. 22 in granting the defendants’ motion to dismiss (In re Eros International Securities Litigation, No. 15-8956, S.D. N.Y., 2017 U.S. Dist. LEXIS 157978).

  • October 2, 2017

    Securities Claims Allowed To Proceed In Wal-Mart Investor Class Action

    FAYETTEVILLE, Ark. — A retirement system has standing to bring its federal securities law claims against Wal-Mart Stores Inc. and its CEO to recover for damages sustained by the company as part of its alleged attempt to cover up a bribery scheme at its Mexican subsidiary because investors, not the company, will recover the proceeds of any favorable judgment, a federal judge in Arkansas ruled Sept. 29 in denying the defendants’ motion to dismiss (City of Pontiac General Employees Retirement System v. Wal-Mart Stores Inc., et al., No. 12-5162, W.D. Ark., 2017 U.S. Dist. LEXIS 160571).

  • September 29, 2017

    Drug Company Reaches $13M Settlement With SEC Over Accounting Fraud Claims

    WASHINGTON, D.C. — Medical manufacturer Alere Inc. will pay more than $13 million to settle claims with the Securities and Exchange Commission that it engaged in accounting fraud and made improper payments for foreign officials through its foreign subsidiaries in violation of federal securities laws, according to an SEC cease-and-desist order filed Sept. 28 (In the Matter of Alere Inc., No. 3-18228, SEC).

  • September 29, 2017

    Judge: Investor In Securities Suit Failed To Plead Elements Of Federal Claims

    NEW YORK — The lead plaintiff in a securities class action lawsuit against an engineered products manufacturer and certain of its current and former executive officers failed to plead any material misrepresentations or omissions or scienter in making their federal securities law claims, a federal judge in New York ruled Sept. 20 in granting the defendants’ motion to dismiss (In re Eaton Corp. Securities Litigation, No. 16-5894, S.D. N.Y., 2017 U.S. Dist. LEXIS 153323).