Mealey's Securities

  • November 27, 2019

    1st Circuit Panel Upholds Insider-Trading Securities Fraud Conviction

    BOSTON — A federal jury properly found a real estate investor guilty of insider-trading securities fraud based on inside information he received from his wife, a corporate insider, and provided to two friends because government prosecutors presented sufficient evidence that the defendant shared a “history, pattern, or practice of sharing confidences” with his wife, a First Circuit U.S. Court of Appeals panel ruled Nov. 22 (United States v. Amit Kanodia, Nos. 17-1137 and 17-1590, 1st Cir.).

  • November 26, 2019

    Judge Approves $1.15M Settlement In Stock Drop Suit Against Drug Maker

    LOS ANGELES — A federal judge in California on Nov. 19 granted final approval of a $1.15 million securities class action settlement against a drug maker, certain of its current and former officers and directors and others over their alleged involvement in an illegal stock-pumping scheme (Arthur Kaye IRA FCC, et al. v. ImmunoCellular Therapeutics Ltd., et al., No. 17-3250, C.D. Calif., 2019 U.S. Dist. LEXIS 201657).

  • November 26, 2019

    Tender Offer Statements Not Materially Misleading, Defendants Argue

    SAN FRANCISCO — A federal district court did not err in dismissing federal securities law claims in a shareholder class action lawsuit alleging that a drug maker and its board of directors issued misrepresentations in a recommendation statement for a proposed merger deal lead plaintiffs failed to plead any material misstatements or omissions, scienter or loss causation in making those claims, the defendants argue in a Nov. 22 appellee brief filed in the Ninth Circuit U.S. Court of Appeals (In re:  Ocera Therapeutics Inc. Securities Litigation, No. 18-17345, 9th Cir.).

  • November 26, 2019

    Lead Plaintiffs’ Scienter Allegations Deemed Insufficient Under Helwig

    TOLEDO, Ohio — A federal judge in Ohio on Nov. 22 ruled that lead plaintiffs in a securities class action against a real estate investment trust (REIT) and certain of its current and former senior executives failed to sufficiently plead that the defendants acted with the requisite scienter under Sixth Circuit U.S. Court of Appeals precedent in alleging that they failed to disclose to investors in violation of federal securities law that the REIT’s largest revenue stream was involved in a massive Medicare billing fraud scheme (Boynton Beach Firefighters’ Pension Fund v. HCP Inc., No. 16-1106, N.D. Ohio, 2019 U.S. Dist. LEXIS 203180).

  • November 25, 2019

    Cannabis Producer Hit With Stock-Drop Suit Over Alleged Misrepresentations

    NEWARK, N.J. — A shareholder sued a cannabis producer and distributor and several of its senior executives in New Jersey federal court on Nov. 21, alleging that the defendants misrepresented the financial strength of their consumer cannabis revenue in Securities and Exchange Commission reporting documents, conference calls and press releases in violation of federal securities laws (William Wilson v. Aurora Cannabis Inc., et al., No. 19-20588, D. N.J.).

  • November 21, 2019

    Dismissal Of Claims Sought In Stock-Drop Suit Over AT&T’s Streaming Platform

    NEW YORK — Dismissal of claims in a securities class action lawsuit brought against telecommunications giant AT&T Inc., several of its senior executives and its directors is necessary because shareholders have failed to plead any facts necessary to sustain their federal securities law claims in alleging that the defendants concealed the company’s true business and financial condition in connection with its launch of its internet-based TV streaming platform, the defendants argue in a Nov. 18 motion to dismiss filed in New York federal court (In re AT&T/DirectTV Now Securities Litigation, No. 19-2892, S.D. N.Y.).

  • November 21, 2019

    Stockholder:  Proposed Fracking Merger Violates Federal Securities Laws

    NEW YORK — A stockholder in a hydraulic fracturing company on Nov. 19 sued that company in New York federal court contending that it violated federal securities laws when it proposed a merger with another fracking company because the federal registration statement related to the deal contained “materially incomplete and misleading information” (Kelly Small v. Jagged Peak Energy Inc., et al., No. 19-10698, S.D. N.Y.).

  • 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).

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