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Mealey's Securities

  • August 16, 2017

    Federal Judge Grants Motion To Dismiss Securities Suit Against Energy Company

    SAN JOSE, Calif. — A California federal judge on Aug. 11 granted a motion to dismiss a securities class action lawsuit filed against a solar energy company and certain of its executive officers after determining that the plaintiffs failed to adequately allege falsity and scienter (In re SolarCity Corp. Securities Litigation, No. 16-4686, N.D. Calif., 2017 U.S. Dist. LEXIS 129137).

  • August 9, 2017

    Judge Refuses To Dismiss Securities, UCL Claims Asserted By Club Investor

    SAN DIEGO — After finding that the manager of a nightclub development company fraudulently induced an investor into investing money for the development of a new club, a California federal judge on Aug. 7 refused to dismiss the investor’s claims for violation of California’s unfair competition law (UCL) and securities fraud (Matthias Mueller v. San Diego Entertainment Partners LLC, et al., No. 16cv2997, S.D. Calif., 2017 U.S. Dist. LEXIS 77643).

  • August 8, 2017

    Lead Plaintiffs Pleaded Actionable Misstatements In Securities Suit, Judge Rules

    SANTA ANA, Calif. — Lead plaintiffs in a securities class action lawsuit against a restaurant chain, certain of its senior officers and others have properly shown that the defendants issued actionable misstatements and omissions regarding the business and financial condition of the company in violation of federal securities laws, a federal judge in California ruled Aug. 4 in denying the defendants’ motion to dismiss (Daniel Turocy v. El Pollo Loco Holdings Inc., et al., No. 15-1343, C.D. Calif.).

  • August 7, 2017

    Former CEO Shkreli Convicted On Securities Fraud, Conspiracy Claims

    BROOKLYN, N.Y. — A federal jury in New York on Aug. 4 convicted former pharmaceutical company CEO and hedge fund manager Martin Shkreli on claims that he orchestrated a massive Ponzi scheme over a six-year span while CEO of Retrophin Inc. (United States of America v. Martin Shkreli, No. 15-637, E.D. N.Y.).

  • August 7, 2017

    American Pipe Tolling Does Not Apply To Claims In Securities Suit, Panel Rules

    PHILADELPHIA — American Pipe & Construction Co. v. Utah tolling does not apply to claims in four related securities class action lawsuits against pharmaceutical companies and others that misrepresented the clinical trial results for a cholesterol treatment drug in violation of federal securities laws based on the U.S. Supreme Court’s recent ruling in California Public Employees Retirement System v. ANZ Securities Inc., a Third Circuit U.S. Court of Appeals panel ruled Aug. 3 in reversing and remanding in a nonprecedential opinion (North Sound Capital LLC, et al. v. Merck & Co. Inc., et al., No. 16-1364, 3rd Cir.; GIC Private Limited v. Merck & Co. Inc., et al., No. 1365, 3rd Cir.; GIC Private Limited v. Merck & Co., et al., No. 16-1366, 3rd Cir.; and North Sound Capital LLC, et al. v. Merck & Co. Inc., et al., No. 16-1367, 3rd Cir.; 2017 U.S. App. LEXIS 14170).

  • August 4, 2017

    Judge Trims Claims In Securities Class Action Against Drug Maker, Others

    PHOENIX — A lead plaintiff in a securities class action lawsuit against a commercial-stage specialty pharmaceutical company and certain of its current and former executive officers has failed to show that a majority of the defendants’ alleged misrepresentations concealing their involvement in an illegal kickback scheme with doctors were actionable and that seven of 10 alleged corrective disclosures had any causal connection to the alleged fraud, a federal judge in Arizona ruled Aug. 1 in granting in part and denying in part the defendants’ motion to dismiss (Richard Di Donato, et al. v. Insys Therapeutics Inc., et al., No.16-0302, D. Ariz., 2017 U.S. Dist. LEXIS 120983).

  • August 3, 2017

    Minnesota Federal Judge Dismisses ERISA, Securities Claims Against Target Corp.

    MINNEAPOLIS — A Minnesota federal judge on July 31 granted Target Corp.’s motion to dismiss an Employee Retirement Income Security Act action and a securities action against it, finding that the ERISA claims failed to plausibly allege that the defendants breached their duty of prudence, duty of loyalty and duty to monitor plan investment committee members and that the plaintiffs failed to show that the defendants’ statements were false or misleading when made, as required by the Private Securities Litigation Reform Act (In re: Target Corp. Securities Litigation, No. 16-1315;  In re:  Target Corp. ERISA Litigation, No. 16-2400, D. Minn., 2017 U.S. Dist. LEXIS 120055).

  • August 2, 2017

    Stock Drop Claims Survive Dismissal Motion In Securities Class Action

    NEW YORK — A federal judge in New York on July 28 substantially denied dismissal of claims in a securities class action lawsuit against a specialty pharmaceutical company and certain of its current and former executive officers and directors, ruling that a shareholder has shown that the defendants violated federal securities laws by concealing a significant downsizing of its salesforce for one of its drugs, as well as the exclusion of the drug from the formularies of several of the nation’s largest health insurers (Andrew Meyer v. Concordia International Corp., et al., No. 16-6467, S.D. N.Y., 2017 U.S. Dist. LEXIS 119436).

  • August 1, 2017

    Securities Suit Remanded To District Court For Consideration Of New Evidence

    NEW YORK — Ruling that a federal district court should first consider new evidence from a pair of enforcement actions against a company, a Second Circuit U.S. Court of Appeals panel on July 27 vacated a shareholder’s appeal and remanded the action to the district court for further review of the new evidence (Retirement Board of the Policemen’s Annuity and Benefit Fund of Chicago v. FXCM Inc., et al., No. 16-3775, 2nd Cir.).

  • July 28, 2017

    Misrepresentation Claims In Securities Suit Too Vague, 8th Circuit Panel Rules

    ST. PAUL, Minn. — Lead plaintiffs in a securities class action lawsuit against a 3D printer manufacturer and certain of its executive officers have failed to plead any actionable misrepresentations in claiming that the defendants violated federal securities laws by misrepresenting the company’s business prospects, an Eighth Circuit U.S. Court of Appeals panel ruled July 25 in affirming a federal district court’s ruling dismissing the suit (In re Stratasys Ltd. Shareholder Securities Litigation, No. 16-3264, 8th Cir.; 2017 U.S. App. LEXIS 13370).

  • July 27, 2017

    Judge: Investors Showed That Drug Maker Misrepresented Clinical Test Results

    SANTA ANA, Calif. — Lead plaintiffs in a securities class action lawsuit against a pharmaceutical company and certain of its executive officers have shown that the defendants issued misrepresentations regarding the clinical trial results for the company’s breast cancer treatment drug in violation of federal securities laws, a federal judge in California ruled July 25 in denying the defendants’ motion to dismiss (Hsingching Hsu v. Puma Biotechnology Inc., et al., No. 15-0865, C.D. Calif.).

  • July 27, 2017

    Lead Plaintiff Pleaded Elements Of Securities Law Claims, Judge Rules

    SAN FRANCISCO — A federal judge in California on July 26 denied a motion to dismiss filed by defendants in a securities class action lawsuit against GoPro Inc. and certain of its executive officers, ruling that the lead plaintiff in the action properly pleaded a material misrepresentation or omission, scienter and loss causation in making his federal securities law claims (Anton Bielousov v. GoPro Inc., et al., No. 16-6654, N.D. Calif.; 2017 U.S. Dist. LEXIS 117223).

  • July 25, 2017

    Judge: Investors Properly Pleaded Securities Law Claims Against Coffee Company

    BURLINGTON, Vt. — Partial summary judgment is not warranted in a securities class action lawsuit against a coffee company and certain of its executive officers because lead plaintiffs have stated a plausible claim for relief in making their federal securities law claims, a federal judge in Vermont ruled July 21 in denying the defendants’ 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.; 2017 U.S. Dist. LEXIS 114473).

  • July 20, 2017

    2nd Circuit Overturns Convictions In Rabobank LIBOR Criminal Proceedings

    NEW YORK — In what the Second Circuit U.S. Court of Appeals is calling the first criminal appeal related to the London Interbank Offered Rate (LIBOR) to reach a federal appellate court, the appeals court on July 19 overturned the convictions of two former employees of Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank), ruling that a district court erred in allowing compelled testimony because it is not allowed in U.S. criminal cases even when it was compelled by a foreign sovereign (United States of America v. Anthony Allen, et al., Nos. 16-898-cr and 16-939-cr, 2nd Cir.).

  • July 18, 2017

    2nd Circuit Panel Affirms ERISA Claims Dismissal, OKs Securities Claim Amendment

    NEW YORK — A Second Circuit U.S. Court of Appeals panel on July 13 affirmed the dismissal of retired Booz Allen Hamilton officers’ Employee Retirement Income Security Act claims because the plan through which Booz Allen distributed its stock to employees was not an employee pension benefit plan within the meaning of ERISA but vacated the judgment to the extent that it denied the motion by one plaintiff for leave to amend to add securities fraud claims (Bruce Pasternack, et al. v. Ralph W. Shrader, et al., No. 16-217, 2nd Cir., 2017 U.S. App. LEXIS 12513).

  • July 18, 2017

    5th Circuit: No Jurisdiction Over Untimely Objection To Class Settlement

    NEW ORLEANS — A Fifth Circuit U.S. Court of Appeals panel on July 17 ruled that it lacked appellate jurisdiction over a class member’s untimely objection to a settlement resolving a merger dispute where class members receive only additional disclosures, confirmatory discovery and attorney fees (Lawrence G. Farber v. Crestwood Midstream Partners L.P., et al. v. David G. Duggan, Isaac Aron, et al. v. Crestwood Midstream Partners L.P., et al. v. David G. Duggan, No. 16-20742, 5th Cir., 2017 U.S. App. LEXIS 12765).

  • July 14, 2017

    Shareholders Granted Leave To Amend Corporate Scienter Claims In Securities Suit

    NEW YORK — A federal judge in New York on July 7 denied a motion for reconsideration filed by shareholders in a securities class action lawsuit, ruling that the shareholders failed to plead scienter against a company and its executive officers, but the judge granted the shareholders leave to amend to cure their corporate scienter pleading deficiencies (Raymond Thomas, et al. v. Shiloh Industries Inc., et al., No. 15-7449, S.D. N.Y., 2017 U.S. Dist. LEXIS 105291).

  • July 14, 2017

    Panel: Court Properly Dismissed Securities Claims Against Solar Company

    NEW YORK — A federal district court did not err in dismissing a shareholder’s second amended complaint in a securities class action lawsuit against a solar energy company and others because it was not required to disclose certain information in its offering documents for an initial public offering (IPO) based on circuit precedent, a Second Circuit U.S. Court of Appeals panel ruled June 21 (Robby S. Stadnick, et al. v. Vivint Solar Inc., et al., No. 16-65, 2nd Cir., 2017 U.S. App. LEXIS 11042).

  • July 14, 2017

    Petitioner: Congress Limited Private Right Of Action On Securities Claims

    WASHINGTON, D.C. — Congress precluded judicial expansion of the private right of action on claims for violation of Section 10(b) of the Securities Exchange Act of 1934 and Securities and Exchange Commission Rule 10b-5, and a decision by a federal appellate court transgresses that limitation, a petitioner in a securities class action argues in a merits brief filed June 21 in the U.S. Supreme Court (Leidos Inc., v. Indiana Public Retirement System, et al., No. 16-581, U.S. Sup., 2017 U.S. S. Ct. Briefs LEXIS 2193).

  • July 14, 2017

    Lead Plaintiffs Seek Class Certification In Securities Suit Against Drug Maker

    BOSTON — A federal judge should grant a motion for class certification filed by lead plaintiffs in a securities class action lawsuit against a biopharmaceutical company and certain of its executive officers because the lead plaintiffs have satisfied all statutory requirements for certification, the lead plaintiffs argue in a motion for class certification filed June 29 in Massachusetts federal court (In re AVEO Pharmaceuticals Inc. Securities Litigation, No. 13-11157, D. Mass.).