Mealey's Securities

  • October 28, 2019

    Panel Asked To Overturn District Court’s Dismissal Of Securities Law Claims

    BOSTON — A federal judge in Massachusetts erred in ruling that lead plaintiffs in a securities class action lawsuit against a biopharmaceutical company and certain of its executive officers failed to sufficiently plead the elements of their federal securities law claims because the defendants’ statements to investors were fraudulent and materially misleading, the lead plaintiffs argue in an Oct. 23 appellant brief filed in the First Circuit U.S. Court of Appeals (Kavita Mehta, et al. v. Ocular Therapeutix Inc., et al., No. 19-1557, 1st Cir.).

  • October 25, 2019

    Securities Suit Defendants’ Request To Appeal Class Certification Ruling Denied

    CINCINNATI — A Sixth Circuit U.S. Court of Appeals panel on Oct. 23 denied a petition for permission to appeal in a securities class action lawsuit against for-profit hospital operator Community Health Systems Inc. (CHS) and two of its senior officers, ruling that a federal district court did not abuse its discretion in granting a motion for class certification filed by lead plaintiffs (In re Community Health Systems Inc., et al., No. 19-0509, 6th Cir.).

  • October 25, 2019

    Defendants: Investor Fails To Plead Elements Of Securities Claims

    TRENTON, N.J. — The lead plaintiff in a securities class action lawsuit against a former biotech company, several of its current and former officers and directors and others has failed to sufficiently state a claim for relief in arguing that the defendants engaged in a pump-and-dump scheme in violation of federal securities laws because the lead plaintiff’s reliance on “‘47 exhibits’ falling outside the four corners” of his amended complaint highlights his “multiple pleading deficiencies,” several of the defendants argue in an Oct. 22 reply brief filed in New Jersey federal court in support of their motions to dismiss (Creighton Takata v. Riot Blockchain Inc., et al., No. 18-2293, D. N.J.).

  • October 24, 2019

    Judge:  Investors Fail To Plead Demand Futility In Shareholder Derivative Suit

    NASHVILLE, Tenn. — Although shareholders have standing to bring their derivative claims on behalf of a fitness benefit program broker, they have failed to show that demand was futile, a federal judge in Tennessee ruled Oct. 21 in dismissing the amended shareholder derivative complaint (In re Tivity Health Inc. Stockholder Derivative Litigation, No. 18-0087, M.D. Tenn., 2019 U.S. Dist. LEXIS 182603).

  • October 23, 2019

    Judge Consolidates Securities Fraud Cases Related To 3M’s Chemical Liability

    TRENTON, N.J. — A federal judge in New Jersey on Oct. 21 consolidated two securities fraud lawsuits against the 3M Co. and appointed a group of investors as the lead plaintiffs against the company for allegedly issuing false and misleading statements to conceal the truth about the company’s exposure to liability associated with per- and polyfluoroalkyl substances (Heavy & General Laborers’ Locals 472 & 172 Welfare Fund v. 3M Company, et al., No. 19-15982, D. N.J.).

  • October 23, 2019

    Dealer Seeks Summary Judgment On Claims He Lied During CMBS Negotiations

    NEW YORK — A dealer of commercial mortgage-backed securities (CMBS) for Nomura Securities International Inc. is entitled to summary judgment on claims that he issued a series of false statements to investors during purchase and sale negotiations regarding the pricing of the CMBS because his statements were not fraudulent under federal securities laws, the dealer argues in an Oct. 20 summary judgment motion filed in New York federal court (Securities and Exchange Commission v. James H. Im, No. 17-3613, S.D. N.Y.).

  • October 22, 2019

    Dismissal Of Some Claims In Securities Suit Against Tech Company, Others Granted

    SAN JOSE, Calif. — A federal judge in California on Oct. 18 ruled that although the lead plaintiff in a securities class action against a medical technology company the develops and sells a hair restoration procedure robotic device failed to plead a material misrepresentation with regard to certain allegations made in support of its federal securities law claim, he sufficiently pleaded falsity in support of others (In re Restoration Robotics Inc. Securities Litigation, No. 18-3712, N.D. Calif., 2019 U.S. Dist. LEXIS 181030).

  • October 18, 2019

    Panel Asked To Determine Whether Dismissal Of Securities Claims Was Proper

    SAN FRANCISCO — Parties in a securities class action lawsuit against a mining company and two of its senior executives recently asked the Ninth Circuit U.S. Court of Appeals to determine whether a federal district court erred in dismissing a second amended complaint filed by lead plaintiffs for failure to plead scienter in making their federal securities law claims (Stephania Nozak, et al. v. Northern Dynasty Ltd., et al., No. 19-55342, 9th Cir.).

  • October 18, 2019

    High Court Review Sought For Attorney Fee Ruling In Securities Class Action

    WASHINGTON, D.C. — U.S. Supreme Court review of a Second Circuit U.S. Court of Appeals ruling affirming an award of attorney fees in a securities class action settlement is necessary because the award was not reasonable under the “general ‘American Rule’” that a party bears its own attorney fees and the Supreme Court’s definition of “a reasonable attorney’s fee” in fee-shifting cases, an objector argues in an Aug. 21 petition for writ of certiorari (Fresno County Employees’ Retirement Association v. Isaacson/Weaver Family Trust, No. 19-244, U.S. Sup).

  • October 18, 2019

    Claims In Securities Suit Against Tech Company, Others Trimmed

    SEATTLE — A federal judge in Washington on Oct. 4 ruled that although the lead plaintiff in a securities class action against a technology company and certain of its senior executives has sufficiently pleaded falsity with regard to certain of its allegations in support of its federal securities law claims, it has not done so for all of them (In re Impinj Inc. Securities Litigation, No. 18-5704, W.D. Wash., 2019 U.S. Dist. LEXIS 172802).

  • October 18, 2019

    Dismissal Of Claims In Stock Drop Suit For Failure To Plead Scienter Upheld

    NEW YORK — In an Oct. 15 summary order, a Second Circuit U.S. Court of Appeals panel ruled that a federal district court did not err in dismissing federal securities law claims in an investor class action lawsuit against a provider of high technology products and services to the building and aerospace industries and certain of its senior executives after construing a pre-motion letter as an actual motion to dismiss (Kapitalforeningen Lægernes Invest v. United Technologies Corp., et al., No. 18-3208, 2nd Cir., 2019 U.S. Dist. LEXIS 30899).

  • October 18, 2019

    Shkreli Seeks High Court Review Of Securities Fraud Conviction

    WASHINGTON, D.C. — Review of a federal appellate panel’s ruling 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 is necessary because such a ruling is an issue of first impression that should be decided by the U.S. Supreme Court, Shkreli argues in an Oct. 10 petition for writ of certiorari (Martin Shkreli v. United States of America, No. 19-495, U.S. Sup.).

  • October 18, 2019

    E-Cigarette Distributor, Others Hit With Stock Drop Suit Over IPO Misstatements

    WEST PALM BEACH, Fla. — A shareholder sued a distributor of e-cigarettes, vaporizers and accessories and products containing hemp-derived cannabidiol (CBD) and certain of its executive officers and directors in Florida federal court on Oct. 16, alleging that the defendants failed to disclose in offering documents for an initial public offering (IPO) a major initiative in the City of San Francisco that would severely impede the company’s business and financial success in offering documents in violation of federal securities laws (Randall Mayer v. Greenlane Holdings Inc., et al., No. 19-81411, S.D. Fla.).

  • October 17, 2019

    Securities Class Action Claims Dismissed For Failure To Plead Falsity, Scienter

    CHICAGO — A federal judge in Illinois on Oct. 16 ruled that lead plaintiffs in a securities class action lawsuit against a provider of in-flight internet connectivity equipment and services to airlines and airline passengers and certain of its current and former senior executives failed to sufficiently plead falsity and scienter in alleging that the defendants failed to disclose significant design flaws with one of its global satellite system products in violation of federal securities laws (Ashley Pierrelouis v. Gogo Inc., et al., No. 18-4473, N.D. Ill., 2019 U.S. Dist. LEXIS 179251).

  • October 16, 2019

    Appeal Of Final Judgment In SEC Enforcement Action Deemed Frivolous

    ATLANTA — In an unpublished per curiam opinion, an 11th Circuit U.S. Court of Appeals panel on Oct. 11 ruled that a pro se defendant’s appeal of a final judgment and disgorgement order against him is frivolous and barred by the law-of-the-case doctrine (Securities and Exchange Commission v. Daniel Imperato, et al., No. 19-11062, 11th Cir., 2019 U.S. App. LEXIS 30495).

  • October 15, 2019

    Judge Dismisses Investor’s Securities Law Claims As Non-Actionable

    FORT LAUDERDALE, Fla. — Dismissal of federal securities law claims against a health care administration company and certain of its executive officers is warranted because the defendants’ alleged misstatements were statements of corporate optimism or puffery or were forward-looking and were, thus, subject to protection under the safe harbor provision of the Private Securities Litigation Reform Act (PSLRA), a federal judge in Florida ruled Oct. 2 (Cambridge Retirement System v. MEDNAX Inc., et al., No. 18-61572, S.D. Fla., 2019 U.S. Dist. LEXIS 172844).

  • October 15, 2019

    SEC: Review Of Preliminary Injunction Ruling In Ponzi Scheme Suit Not Warranted

    WASHINGTON, D.C. — U.S. Supreme Court 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 is not warranted because the circuit court correctly held that the Securities and Exchange Commission may pursue its enforcement action against the defendant for operating a “Ponzi scheme that defrauded domestic and foreign investors in violation of the federal securities laws,” the SEC argues in a Sept. 20 opposition brief filed in the Supreme Court (Charles D. Scoville v. Securities and Exchange Commission, No. 18-1566, U.S. Sup.).

  • October 15, 2019

    High Court Declines Review Of Attorney Fee Ruling In Securities Class Action

    WASHINGTON, D.C. — The U.S. Supreme Court on Oct. 15 decided against review of a Second Circuit U.S. Court of Appeals ruling affirming an award of attorney fees in a securities class action settlement where the petitioner had argued that the award was unreasonable under the “general ‘American Rule’” that a party bears its own attorney fees and the Supreme Court’s definition of “a reasonable attorney’s fee” in fee-shifting cases (Fresno County Employees’ Retirement Association v. Isaacson/Weaver Family Trust, No. 19-244, U.S. Sup).

  • October 14, 2019

    Securities Fraud Claims Dismissed In Semiconductor Company Stock-Drop Suit

    PHILADELPHIA — A federal judge in Pennsylvania on Oct. 9 ruled that lead plaintiffs in a securities class action lawsuit have failed to sufficiently plead their federal securities law claims against a manufacturer of capital equipment and expendable tools used to assemble semiconductor devices (Mandira Kumar, et al. v. Kulicke & Soffa Industries Inc., et al., No. 19-0362, E.D. Pa., 2019 U.S. Dist. LEXIS 175867).

  • October 11, 2019

    Claims In Stock Drop Suit Against Footwear Retailer Dismissed With Prejudice

    NEW YORK — A federal judge in New York on Sept. 23 ruled that dismissal of federal securities law claims in a securities class action lawsuit against footwear retailer Skechers U.S.A. Inc. and two of its senior executives is necessary because a shareholder failed to plead any material misrepresentations or omissions in alleging that the defendants engaged in a massive “pump-and-dump” scheme (Steamfitters Local 449 Pension Plan v. Skechers U.S.A. Inc., et al., No. 17-8107, S.D. N.Y., 2019 U.S. Dist. LEXIS 163315).

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