119 results for 'cat:"Securities" AND cat:"Class Action"'.
[Consolidated.] J. Cho consolidates two securities class actions against New York Community Bancorp, a Northeast-regional bank holding company, which allegedly made misleading statements regarding the quality of its assets following the acquisition of two commercial banks, leading to a steep decline in its stock value once it announced it would cut dividends following substantial quarterly losses. The court finds the two cases involve the same set of claims and questions of law. The court further appoints the Boston Retirement System as lead plaintiff, finding it suffered the second biggest financial losses at $889,177 and it satisfies the court’s preference to have institutional investors as lead plaintiffs in class actions.
Court: USDC Eastern District of New York, Judge: Cho, Filed On: May 7, 2024, Case #: 2:24cv1118, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities, class Action
J. Forrest vacates a district court order staying a securities fraud action pending completion of a Chapter 11 bankruptcy case and remands the matter. The matter arises from a group of retirement and pension funds which filed a consolidated putative securities class action against PG&E Corp., Pacific Gas & Electric Co., and some of its current and former officers, directors, and bond underwriters. PG&E filed for Chapter 11 bankruptcy which automatically stayed the action against PG&E but not the individual defendants. The district court abused its discretion in ordering the stay as to the individual defendants.
Court: 9th Circuit, Judge: Forrest, Filed On: May 3, 2024, Case #: 22-16711, Categories: Bankruptcy, securities, class Action
J. Kaplan grants the banks' motion to dismiss a class action alleging violations of the Commodity Exchange Act in connection with the marketing, sale, and management of a derivative investment product. The complaint fails to allege specific acts committed by each individual defendant, instead lumping defendants together as a group. Further, the fraud allegations do not detail exactly what fraudulent statements the bank make to investors.
Court: USDC Southern District of New York, Judge: Kaplan, Filed On: April 29, 2024, Case #: 1:23cv2866, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, class Action
J. Edison finds, upon remand, that one group of investors in a divided class can move forward with class certification in a case regarding a failure to disclose information prior to a merger. The court initially ruled that applicants for a class action must be separated because the class included stockholders of both companies involved in the merger creating a conflict. On remand, one group of investors holding stock in one of the companies involved in the merger can certify as a class at this juncture with the recommendation that investors holding stock in the other company be permitted to apply for class certification separately.
Court: USDC Southern District of Texas, Judge: Edison, Filed On: April 24, 2024, Case #: 4:18cv4330, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities, class Action
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J. Matsumoto approves a $9.5 million proposed class action settlement against a steel manufacturer on claims for securities violations. Investors sued the company following a steep decline in its stock price after it was reported it had engaged in a bribery scheme targeting government officials in Argentina. The court awards lead counsel a third of the settlement amount, approximately $3.1 million, in attorney fees, plus $83,935 in expenses.
Court: USDC Eastern District of New York, Judge: Matsumoto, Filed On: April 22, 2024, Case #: 1:18cv7059, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities, class Action
J. McKeown finds that the district court properly dismissed a securities fraud action against an international information services company under a Securities Exchange Act and Rule. The class alleged that the company made materially misleading statements by omitting key facts regarding a 2015 acquisition and a 2017 investment. The class was unable to show a strong inference that the company acted with the intent to deceive or with deliberate recklessness as to the possibility of misleading investors. Affirmed.
Court: 9th Circuit, Judge: McKeown, Filed On: April 19, 2024, Case #: 22-55829, Categories: securities, class Action
[Consolidated.] J. Easterbrook finds that the lower court improperly denied an investor's motion to intervene in a dismissed securities class action. The investor seeks to challenge $300,000 in mootness fees paid by the corporation to counsel in a suit mooted after the company agreed to make supplemental disclosures about its proposed merger. He claims that the only purpose of the suit was not needlessly increase the cost of litigation to induce the company to pay fees to counsel, while not providing any real benefit to investors. While the court has already ordered the fees returned in this particular case, counsel are entitled to be heard, and the court may consider sanctions. Vacated.
Court: 7th Circuit, Judge: Easterbrook, Filed On: April 15, 2024, Case #: 18-2220, Categories: securities, Attorney Fees, class Action
J. Bennett grants cross-motions for judgment on the pleadings in favor of Under Armour brought by the insurer in this insurance dispute from a consolidated class action over securities, derivative matters and a government investigation. The parties reached an agreement, and they no longer dispute the insurance coverage during the relevant times.
Court: USDC Maryland, Judge: Bennett, Filed On: April 15, 2024, Case #: 1:22cv2481, NOS: Insurance - Contract, Categories: Insurance, securities, class Action
Per curiam, the appellate division finds that the lower court properly granted Viacom's motion to dismiss a securities class action, but denied the underwriters' motion to dismiss the same claims. A reasonable investor could find it relevant that the underwriters planned to sell their own holdings of Viacom, while Viacom was offering $3 billion of equities. Investors have adequately alleged that the underwriters did not implement any information barrier between their underwriting and brokerage departments that would have prevented the improper trading on insider information. Affirmed.
Court: New York Appellate Divisions, Judge: Per curiam, Filed On: April 4, 2024, Case #: 01866, Categories: Fraud, securities, class Action
[Consolidated.] J. Rakoff grants the banks' motion to dismiss seven securities class actions alleging the banks sold billions of dollars of securities before the news publicly broke that their client, Archegos Capital Management, had engaged in market manipulation of these issuers. The investors have not alleged that Archegos shared the issuers' confidential information, so they cannot assert an insider trading theory.
Court: USDC Southern District of New York, Judge: Rakoff, Filed On: April 1, 2024, Case #: 1:21cv8413, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities, class Action
J. Matsumoto dismisses a securities fraud class action against Immunovant, a drug manufacturer, over alleged misstatements and omissions made regarding the development, testing and marketing of one of its autoimmune disease medications. The court finds disagreements over the parties’ competing interpretations of data obtained in clinical trials is not actionable under securities laws, thus the investors fail to plead material misrepresentations and scienter.
Court: USDC Eastern District of New York, Judge: Matsumoto, Filed On: March 29, 2024, Case #: 1:21cv918, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Health Care, securities, class Action
J. Subramanian partially denies the company's motion to dismiss a securities fraud action alleging it falsely portrayed its business as having a unique, asset-light, consignment model when it really operated like any other used-car dealership. The investors lack statutory standing for the pre-merger statements, but adequately plead scienter for executives' financial projections on an earnings call and statements regarding its reliance on one main sourcing partner.
Court: USDC Southern District of New York, Judge: Subramanian, Filed On: March 29, 2024, Case #: 1:21cv5906, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, class Action
J. Hall dismisses a class action brought against Kandi, a Chinese electric-vehicle manufacturer, for securities violations. The case stems from allegations that it used fake vehicle sales to obtain $160 million from U.S. investors, allegations which the company denies. The investors fail to plead scienter.
Court: USDC Eastern District of New York, Judge: Hall, Filed On: March 29, 2024, Case #: 2:20cv6042, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, class Action
J. Menendez partially grants the medical technology company's motion to dismiss the shareholders' suit alleging that it misrepresented a product's progress toward FDA approval to investors. The shareholders have not alleged facts showing that any of the company's backward-looking statements about the product were false statements of material fact or actionable omissions. Other statements the shareholders point to are inactionable opinions, and their complaint does not include any statements by the company or its officers guaranteeing or assuring that the product would be approved by the FDA, at all or on a particular timeline.
Court: USDC Minnesota, Judge: Menendez, Filed On: March 28, 2024, Case #: 0:22cv2197, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, class Action
J. Schofield denies the company's motion to dismiss a securities fraud suit alleging it made material omissions in statements about an acquisition. The statements allegedly created the impression the acquisition would be approved by the government without requiring renegotiation of the merger. The company repeatedly and specifically stated the expected merger timetable, which was misleading if corporate executives, behind the scenes, knew otherwise.
Court: USDC Southern District of New York, Judge: Schofield, Filed On: March 27, 2024, Case #: 1:22cv4838, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, class Action
J. Burroughs denies a software company and two of its executives’ motion to dismiss a class action brought against them by a retirement trust for allegedly making false and misleading statements about demand for, and sales of, the company’s software. While forward-looking comments are not actionable, false statements made about the present are.
Court: USDC Massachusetts, Judge: Burroughs, Filed On: March 25, 2024, Case #: 1:22cv10321, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, class Action
J. Bashant grants final approval to a $7.5 million settlement in a securities class action against GW Pharmaceuticals. Although the settlement amount represents approximately 1% of the maximum potential damages estimated by the shareholder's expert, GW Pharmaceuticals persuasively argues "that the hypothetical $600 million recovery was a 'pie in the sky value'." Furthermore, the settlement amount is "very much in line" with settlements in other similar litigation.
Court: USDC Southern District of California, Judge: Bashant, Filed On: March 25, 2024, Case #: 3:21cv1019, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Settlements, securities, class Action
J. Nathan finds that the district court improperly dismissed extraterritorial class claims brought against international crypto exchange Binance for the sale of allegedly unregistered securities called "tokens." The transactions were domestic since the buyers made irrevocable purchases from their home states on servers operated by the exchange in the U.S., and the claims were not untimely because they did not accrue until after the purchases were made. Reversed.
Court: 2nd Circuit, Judge: Nathan, Filed On: March 8, 2024, Case #: 22-972, Categories: Civil Procedure, securities, class Action