Mealey's Securities

  • December 22, 2021

    Lack Of Misstatements, Scienter Doom Shareholder Claims In Stock-Drop Suit

    SAN FRANCISCO — A federal judge in California on Dec. 20 dismissed shareholder claims in a securities class action against a company and certain of its current and former senior executives alleging that the defendants concealed that its revenues and profits had been diverted to “undisclosed related parties,” ruling that a lead plaintiff failed to sufficiently plead any material misstatement or omission or scienter in making his federal securities law claims.

  • December 20, 2021

    Panel Ruling Misinterpreted In Safe Harbor Analysis, Pension Funds Argue

    SAN FRANCISCO — A federal district court misapplied Ninth Circuit U.S. Court of Appeals precedent in a shareholder class action against an aviation parts manufacturing conglomerate and certain of its senior executives when it granted summary judgment in their favor because the Ninth Circuit’s ruling did not find that statements of present progress toward a goal were forward-looking “unless they contain highly specific information about a company’s present circumstances,” two pension funds argue in a Dec. 15 appellant brief filed in the Ninth Circuit.

  • December 20, 2021

    No Manifest Error Present In Ruling In Walgreen Securities Suit, Investor Says

    CHICAGO — A federal judge in Illinois should deny a motion for reconsideration or interlocutory appeal in a securities class action against retail pharmacy chain Walgreen Co. and two of its former senior executives in a shareholder class action alleging that the defendants failed to disclose that the company would not be able to hit its earning goals for fiscal year 2016 after merging with another pharmacy company because the defendants have failed to meet their burden of showing that such “extraordinary relief” is warranted, the lead plaintiff in the action argues in a Dec. 17 opposition brief filed in Illinois federal court.

  • December 20, 2021

    Judge Grants Preliminary Approval To $90M Settlement Of Altria Securities Lawsuit

    RICHMOND, Va. — A Virginia federal judge on Dec. 16 granted preliminary approval to a $90 million proposed settlement between the lead plaintiffs in a securities class action against Altria Group Inc., e-cigarette maker Juul Labs Inc. and the companies’ executives in which shareholders said the defendants concealed the regulatory and legal risks associated with Juul’s alleged youth marketing when Altria acquired 35% of the company in December 2018.

  • December 20, 2021

    Shareholder Says Fracking Company Violated Securities Laws With Proposed Merger

    DALLAS — A shareholder in a hydraulic fracturing company on Dec. 15 sued the company and its officers in Texas federal court alleging that they violated securities laws when they filed “materially incomplete and misleading” documents in connection with a planned merger.

  • December 16, 2021

    Divided En Banc 5th Circuit Allows SEC ALJ Removability Challenge To Proceed

    NEW ORLEANS — A divided en banc Fifth Circuit U.S. Court of Appeals on Dec. 13 ruled that defendant in a Securities and Exchange Commission enforcement action may challenge whether SEC administrative law judges (ALJs) are constitutionally protected from removal because the Securities Exchange Act of 1934 does not disturb a federal district court’s jurisdiction over the defendant’s “structural constitutional claims.”

  • December 14, 2021

    Initial Approval Of $90M Settlement Sought In Altria Securities Class Action

    RICHMOND, Va. — Lead plaintiffs in a securities class action against Altria Group Inc., e-cigarette maker Juul Labs Inc. and the companies’ executives asked a federal judge in Virginia on Dec. 9 to grant preliminary approval to a $90 million proposed settlement that would bring an end to shareholder claims alleging that the defendants concealed the regulatory and legal risks associated with Juul’s alleged youth marketing when Altria acquired 35 percent of the company in December 2018.

  • December 13, 2021

    U.S. Supreme Court Will Not Take Up Appeal In SIB Ponzi Scheme Clawback Suit

    WASHINGTON, D.C. — The U.S. Supreme Court on Dec. 13 declined review of a Fifth Circuit U.S. Court of Appeals’ ruling in an appeal of a clawback suit filed by the court-appointed receiver for Stanford International Bank (SIB) stemming from R. Allen Stanford’s massive Ponzi scheme in which a panel determined that the Texas Uniform Fraudulent Transfer Act’s (TUFTA) good faith affirmative defense does not allow SIB investors to retain fraudulent transfers they received while on inquiry notice of the scheme.

  • December 10, 2021

    Class Certified In Goldman Sachs Stock-Drop Suit After Lengthy Appeal Process

    NEW YORK — After what he deemed a “prolonged interlocutory appeals saga that has prompted three decisions from the Second Circuit, one from the Supreme Court, and untold pages of cumulative briefing,” a federal judge in New York on Dec. 8 granted class certification in a securities class action against Goldman Sachs Group Inc. and certain of its former senior executives stemming from their alleged misrepresentation pertaining to four collateralized debt obligation transactions.

  • December 10, 2021

    Meager Scienter Allegations Doomed Fraud Claims Against IT Company, Panel Rules

    RICHMOND, Va. — A Fourth Circuit U.S. Court of Appeals panel on Dec. 1 affirmed a federal district court’s dismissal of shareholder claims in a securities class action against an information technology (IT) company and two of its senior officers stemming from alleged misrepresentations the defendants made regarding the company’s reorganization plan, ruling that the shareholders failed to sufficiently plead scienter on the part of the defendants individually or holistically, as required.

  • December 09, 2021

    Dismissal Of Gap Board Diversity Suit Proper On Forum Non Conveniens Grounds

    SAN FRANCISCO — A federal district court’s dismissal of an investor’s claims in a shareholder derivative lawsuit against current and former executive officers and directors of clothing retailer The Gap Inc. over the company’s lack of racial and ethnic diversity on its board of directors and senior management team was proper because the investor failed to sufficiently honor the company’s forum-selection clause in bringing her lawsuit, the officers and directors argue in a Dec. 8 appellee brief filed in the Ninth Circuit U.S. Court of Appeals.

  • December 09, 2021

    Scant Scienter Allegations Do Not Support Investor Claims In Stock-Drop Suit

    NEW YORK — A Second Circuit U.S. Court of Appeals panel on Dec. 7 affirmed a federal district court’s dismissal of federal securities law claims in a shareholder class action against a drug company and others over their alleged failure to disclose U.S. Food and Drug Administration concerns pertaining to the clinical study program used to test the efficacy of the company’s depression and cocaine dependence treatment product because the lead plaintiff in the action failed to sufficiently plead scienter in making its federal securities law claims.

  • December 09, 2021

    Shareholder Says Fracking Company Violated Securities Laws Regarding Merger

    PHILADELPHIA — A shareholder in a hydraulic fracturing company on Dec. 8 sued the company in Pennsylvania federal court contending that the company and its officers violated federal securities laws when they failed to disclose material information to the U.S. Securities and Exchange Commission regarding a proposed merger.

  • December 08, 2021

    Cannabis Grower Refutes Investor Allegations As Insufficient In Pleading Fraud

    NEWARK, N.J. — Dismissal of federal securities law claims in a shareholder class action against a cannabis company and certain of its current and former senior executives and directors is necessary because a second amended complaint filed by the lead plaintiffs fails to cure the pleading deficiencies that led to a prior dismissal of the claims, the defendants argue in a Dec. 6 motion to dismiss filed in New Jersey federal court.

  • December 08, 2021

    Shkreli’s Drug Companies Pay $40M To Settle Federal, State Antitrust Lawsuit

    NEW YORK — Two drug companies controlled by Martin Shkreli on Dec. 7 agreed to pay $40 million to resolve civil antitrust allegations by the Federal Trade Commission and seven states that they blocked the development of generic versions of the drug Daraprim.

  • December 07, 2021

    Shareholders Seek Preliminary Approval Of $7M Settlement Against Cannabis Co.

    NEW YORK — Lead plaintiffs in a securities class action alleging that a cannabis grower and others concealed quality control issues with its product leading up to the company’s initial public offering (IPO) in violation of federal securities law asked a federal judge in New York on Dec. 3 to grant preliminary approval of a $7 million proposed settlement, arguing that the proposed settlement is fair, reasonable and adequate.

  • December 07, 2021

    Supreme Court Will Not Take Up Securities Broker’s Appeal In SEC Action

    WASHINGTON, D.C. — The U.S. Supreme Court on Dec. 6 declined review of a Second Circuit U.S. Court of Appeals panel’s ruling upholding a federal district court’s denial of a convicted securities broker’s request to modify the terms of a consent judgment filed against him since he did not understand the tax consequences of the judgment.

  • December 06, 2021

    Whistleblower Activities Found Not To Be Protected Under Dodd-Frank Act

    PHILADELPHIA — A federal district court in Pennsylvania did not err in dismissing a man’s claim brought against his former employer for retaliation under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 for terminating the man’s employment for reporting alleged securities violations within the company because the man failed to sufficiently plead that he was engaged in any protected activity under the statute, a Third Circuit U.S. Court of Appeals panel ruled Dec. 2 in affirming in an unpublished opinion.

  • December 06, 2021

    Company, SPAC Execs Sued Over Lack Of IPO Business Disclosures

    CHICAGO — A physical therapy company’s investor sued several of the company’s officers and directors, as well as several former officers and directors of a special purpose acquisition company (SPAC) in Illinois federal court on Dec. 1, alleging that the defendants breached their fiduciary duty by failing to disclose that the company would not be able to hit is fiscal year 2021 financial goals prior to the SPAC bringing the company public, in violation of federal securities laws.

  • December 03, 2021

    Investors, Mattel Agree To Terms Of $98M Settlement In Securities Class Action

    LOS ANGELES — Preliminary approval of a $98 million settlement in a securities class action lawsuit against toy maker Mattel Inc., certain of its current and former senior executives and others who investors alleged materially misrepresented the company’s business and financial condition is warranted because the proposed settlement meets the necessary statutory requirements for approval, lead plaintiffs argue in a Nov. 24 motion filed in California federal court.

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