Mealey's Securities

  • November 20, 2019

    Ponzi Scheme Suit Defendants Found Not To Be Statutory Sellers Of Securities

    WEST PALM BEACH, Fla. — Dismissal of securities class action claims against two defendants in a lawsuit stemming from a Ponzi scheme involving the purchase and lending of cryptocurrency is warranted because the lead plaintiffs failed to sufficiently show that those defendants are statutory sellers under Section 12(a) of the Securities Act of 1933, a federal judge in Florida ruled Nov. 15 (In re BitConnect Securities Litigation, No. 18-80086, S.D. Fla., 2019 U.S. Dist. LEXIS 199667).

  • November 20, 2019

    Ponzi Scheme Suit Defendants Found Not To Be Statutory Sellers Of Securities

    WEST PALM BEACH, Fla. — Dismissal of securities class action claims against two defendants in a lawsuit stemming from a Ponzi scheme involving the purchase and lending of cryptocurrency is warranted because the lead plaintiffs failed to sufficiently show that those defendants are statutory sellers under Section 12(a) of the Securities Act of 1933, a federal judge in Florida ruled Nov. 15 (In re BitConnect Securities Litigation, No. 18-80086, S.D. Fla., 2019 U.S. Dist. LEXIS 199667).

  • November 18, 2019

    Shkreli’s Petition For High Court Review Of Jury Instruction Ruling Denied

    WASHINGTON, D.C. — The U.S. Supreme Court on Nov. 18 declined review of the Second Circuit U.S Court of Appeals’ holding addressing the correctness of a “no ultimate harm” (NUH) jury instruction in the conviction of former pharmaceutical company CEO and hedge fund manager Martin Shkreli on charges that he bilked investors of millions of dollars in investments (Martin Shkreli v. United States of America, No. 19-495, U.S. Sup.).

  • November 14, 2019

    Investor Lacks Standing, Fails To State Securities Law Claim, Defendants Argue

    SAN FRANCISCO — A shareholder lacks standing to bring federal securities law claims against a platform provider of a business technology platform, certain of its executive officers and members of its board of directors because he is unable to trace the company shares he purchased to any false or misleading registration statement, defendants argue in a Nov. 8 motion to dismiss filed in California federal court (Tyler Dennee v. Slack Technologies Inc., et al., No. 19-5857, N.D. Calif.).

  • November 14, 2019

    Lack Of Misstatement Leads To Dismissal Of Stock-Drop Claims Against Drug Company

    BOSTON — Dismissal of claims in a shareholder class action lawsuit against a biopharmaceutical company and two of its senior executives is necessary because a shareholder failed to plead any material misrepresentations or omissions in arguing that the defendants concealed that the company lacked adequate cash to fund existing operations and would require it to seek further funding through secondary stock offerings, a federal judge in Massachusetts ruled Nov. 13 (LSI Design and Integration Corp. v. Tesaro Inc., et al., No. 18-12352, D. Mass., 2019 U.S. Dist. LEXIS 196346).

  • November 14, 2019

    ‘Scattershot Approach’ To Pleading Securities Claims Against Drug Maker Rejected

    NEWARK, N.J. — A federal judge in New Jersey on Nov. 12 ruled that lead plaintiffs in a securities class action lawsuit brought against a biopharmaceutical company that develops hematology and oncology therapeutics and certain of its current and former executive officers regarding their marketing and sale of the company’s fentanyl-based cancer treatment drug have failed to plead any actionable misrepresentations in making their federal securities law claims (In re Galena Biopharma Inc. Securities Litigation, No. 17-929, D. N.J., 2019 U.S. Dist. LEXIS 196297).

  • November 14, 2019

    Fuel Card Program Manager To Pay $50M To Settle Shareholder Stock-Drop Claims

    ATLANTA — A company engaged in selling and managing multiple “fuel card” programs and two of its senior officials will pay $50 million to settle claims that they engaged in predatory and exploitive sales practices that artificially inflated the company’s stock price in violation of federal securities laws, according to a motion for preliminary approval of settlement filed Nov. 7 in Georgia federal court (City of Sunrise General Employees’ Retirement Plan v. FleetCor Technologies Inc., et al., No. 17-2207, N.D. Ga.).

  • November 13, 2019

    Shareholder Sues To Halt Vote On Merger Deal Until More Information Is Provided

    NEW YORK — A shareholder of an autologous cell and gene therapy company sued the company and its board of directors in New York federal court on Nov. 11, seeking to enjoin a shareholder vote on a planned merger agreement until the defendants provide their investors with information pertaining to the deal that was omitted from Securities and Exchange Commission documents (Allan Burnaska v. Fibrocell Science Inc., et al., No. 19-10450, S.D. N.Y.).

  • November 12, 2019

    Panel:  Whistleblowers Failed To Provide Sufficient Information To Receive Awards

    NEW YORK — A Second Circuit U.S. Court of Appeals panel on Nov. 8 ruled that the Securities and Exchange Commission did not err in denying whistleblower awards to three parties in exchange for information they provided to the commission as part of an investigation into securities fraud claims against Deutsche Bank AG (DB) because the SEC correctly determined that the information they provided did not meet the statutory guidelines for such awards (Colin Kilgour, et al. v. United States Securities and Exchange Commission, Nos. 18-1124 and 18-1127, 2nd Cir., 2019 U.S. App. LEXIS 33445).

  • November 12, 2019

    Civil Penalty In Insider Trading Suit Upheld On Appeal As Adequate

    CHICAGO — A Seventh Circuit U.S. Court of Appeals panel on Nov. 8 ruled that a federal district court’s assessment of a civil penalty against a defendant for his role in an illegal pump-and-dump and insider trading scheme was proper because although the defendant cooperated with government agencies in blowing the whistle on the fraud scheme against the company for which he worked, he has failed to admit any wrongdoing on his part for insider trading (Securities and Exchange Commission v. Gary S. Williky, No. 19-1243, 7th Cir., 2019 U.S. App. LEXIS 33526).

  • November 08, 2019

    Wood Pellet Plant Maker Seeks To Halt Investor’s Stock Drop Claims

    NASHVILLE, Tenn. — Dismissal of federal securities law claims against a manufacturer of wood pellet plants and certain of its current and former senior executives is warranted because a lead plaintiff has failed to sufficiently plead any material misrepresentations or scienter in alleging that the defendants concealed significant operational issues at two of its plants it manufactured, the defendants argue in an Oct. 25 motion to dismiss filed in Tennessee federal court (City of Taylor General Employees Retirement System v. Astec Industries Inc., et al., No. 19-0024, E.D. Tenn.).

  • November 07, 2019

    Kokesh Did Not Bar Court From Ordering Disgorgement In SEC Action, Panel Rules

    NEW ORLEANS — The U.S. Supreme Court’s ruling in Kokesh v. SEC did not overrule the Fifth Circuit U.S. Court of Appeals’ established precedent recognizing that federal district courts have the authority to order disgorgement in Securities and Exchange Commission enforcement proceedings, a Fifth Circuit panel ruled Nov. 5 (Securities and Exchange Commission v. Team Resources Inc., et al., No. 18-10931, 5th Cir., 2019 U.S. App. LEXIS 33106).

  • November 07, 2019

    None Of 10 Alleged Misstatements In Securities Suit Actionable, Panel Rules

    NEW YORK — A Second Circuit U.S. Court of Appeals panel on Nov. 6 ruled that a federal district court correctly found that lead plaintiffs in a securities class action lawsuit against an engineered products manufacturer and certain of its current and former executive officers failed to plead any actionable misstatements or omissions regarding a possible spin-off of its vehicle business after a merger in making their federal securities law claims (South Carolina Retirement Systems Group Trust, et al. v. Eaton Corp. PLC, et al., No. 18-2450, 2nd Cir., 2019 U.S. App. LEXIS 33149).

  • November 07, 2019

    Convictions In Securities Fraud Suit Stemming From Accounting Scheme Upheld

    RICHMOND, Va. — A federal district court did not err in convicting two defendants charged with operating an accounting fraud scheme because it properly relied on substantial evidence as to each count of conviction in reaching its conclusion, a Fourth Circuit U.S. Court of Appeals panel ruled Nov. 5 (United States v. Michael Kipp, No. 18-4355 and United States v. Joanne Viard, No. 18-4366, 4th Cir., 2019 U.S. Dist. LEXIS 33041).

  • November 06, 2019

    Federal Securities Law Claims Against Insurer, Officers Survive Dismissal Bid

    TAMPA, Fla. — A federal judge in Florida on Nov. 4 ruled that lead plaintiffs in a securities class action against a developer and distributor of short-term “medical discount plans” and two of its senior executives have sufficiently pleaded an actionable misstatement or omission and scienter in making their federal securities law claims (Julian Keippel v. Health Insurance Innovations Inc., et al., No. 19-421, M.D. Fla., 2019 U.S. Dist. LEXIS 191123).

  • November 06, 2019

    Court’s Dismissal Of Investor Suit Based On International Comity Deemed Proper

    NEW YORK — A Second Circuit U.S. Court of Appeals panel on Nov. 5 ruled that a federal district court did not abuse its discretion in dismissing an investor suit against a mining company and its CEO based on international comity because the company’s Canadian bankruptcy proceeding was a parallel action and the district court did not ignore Second Circuit precedent that requires a showing of “exceptional circumstances” (EMA GARP Fund LP, et al. v. Banro Corp., et al., No. 19-662, 2nd Cir., 2019 U.S. App. LEXIS 33005).

  • November 04, 2019

    Panel Rules That Evidence Supported District Court’s Insider Trading Conviction

    NEW ORLEANS — Evidence in an insider trading trial was sufficient to establish that an alleged insider possessed and disclosed material, nonpublic information to her co-conspirators in the scheme and acted with the requisite scienter, a Fifth Circuit U.S. Court of Appeals panel ruled Oct. 31 (United States of America v. Tinghui Xie, No. 18-31299, 5th Cir., 2019 U.S. App. LEXIS 32661).

  • November 04, 2019

    Appeal In SEC Suit Against Alleged Ponzi Scheme Will Not Get High Court Review

    WASHINGTON, D.C. — The U.S. Supreme Court on Nov. 4 declined review of an alleged Ponzi scheme operator’s appeal of a federal circuit court’s upholding of a lower court’s grant of a preliminary injunction in a securities lawsuit (Charles D. Scoville v. Securities and Exchange Commission, No. 18-1566, U.S. Sup.).

  • November 01, 2019

    High Court To Review SEC Disgorgement Award In SEC Enforcement Action

    WASHINGTON, D.C. — The U.S. Supreme Court on Nov. 1 granted review of a federal appellate court’s ruling in a Securities and Exchange Commission enforcement action holding that the SEC may seek disgorgement in addition to injunctive relief and a civil monetary penalty (Charles C. Liu, et al. v. Securities and Exchange Commission, No. 18-1501, U.S. Sup.).

  • November 01, 2019

    Judge:  Investor’s Puzzle Pleading Insufficient To State Securities Law Claim

    SAN JOSE, Calif. — A federal judge in California on Oct. 29 ruled that the lead plaintiff in a securities class action lawsuit against a manufacturer of dental aligners and certain of its executive officers has engaged in unallowable “puzzle pleading” by failing to specify which alleged misrepresentations made by the defendants are indeed actionable under federal securities law (Xiaojiao Lu, et al. v. Align Technology Inc., et al., No. 18-6720, N.D. Calif., 2019 U.S. Dist. LEXIS 188384).

Can't find the article you're looking for? Click here to search the Mealey's Securities archive.