450 results for 'cat:"Securities"'.
J. Walter dismisses the investors' complaint alleging that the real estate investment company authorized false and misleading statements about its real estate assets. The investors claim that the real estate investment company made misleading statements about IRR and distribution projections because it did not disclose the SEC letter, but the SEC letter was available to the public on Jul. 31, 2018, on the SEC's Edgar database before the named investor made his initial funds investment on Sep. 23, 2019.
Court: USDC Central District of California, Judge: Walter, Filed On: October 4, 2023, Case #: 2:20cv8499, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, Class Action
J. Selna grants a bank's motion to dismiss a shareholder's allegations of fraud under the Financial Institutions Reform, Recovery, and Enforcement Act following the Silicon Valley Bank failure. The shareholder alleges that the bank was taken over by regulators just days after representing that it had strong business fundamentals, that bank officers misrepresented the facts and that they did not disclose in updates that FDIC examiners had raised concerns. The shareholder has not exhausted his administrative remedies.
Court: USDC Central District of California, Judge: Selna, Filed On: October 2, 2023, Case #: 8:23cv1206, NOS: Other Fraud - Torts - Personal Property, Categories: Fraud, securities
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[Consolidated.] J. Gonzalez dismisses a putative class action lawsuit alleging securities violations against a bioplastics producer, along with its CEO and CFO, for false or misleading statements related to its Nodax-brand biodegradable plastic products, finding that, while some statements they made were materially misleading, the litigants fail to allege the defendants acted with the knowledge that the statements were false or misleading for purposes of scienter.
Court: USDC Eastern District of New York, Judge: Gonzalez, Filed On: September 30, 2023, Case #: 1:21cv2824, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities, Class Action
J. Henry grants a motion to consolidate two shareholder derivative actions brought against Richard Branson and 16 current or former shareholders, officers or directors of Virgin Galactic for alleged false or misleading statements regarding its oft-delayed commercial space tourism flights. The investors allege the company concealed the extent to which its prototype space vehicles suffered from various technical and design problems throughout their testing phases, which at one point even prompted the Federal Aviation Administration to temporarily ground the company’s flights until corrections were implemented. As a result, the company repeatedly delayed its plans for commercial flights due to the safety problems, which resulted in heavy investor losses. The court finds the two complaints assert similar claims against primarily the same defendants and would serve the interests of judicial economy.
Court: USDC Eastern District of New York, Judge: Henry, Filed On: September 30, 2023, Case #: 1:22cv933, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities, Class Action
J. Matsumoto dismisses outright a securities fraud complaint brought against an industrial plastics manufacturer on claims that it omitted various statements in a proposed stock incentive plan, which ultimately resulted in a 50% loss in value for common stock holders following the company’s approval of a merger that turned the company private. The court finds that many of the omissions the stockholder alleges were not disclosed are in fact disclosed in the stock incentive plan’s papers or are simply self-evident. As well, the stockholder even admits that the company’s financial losses were in large part due to the onset of the Covid-19 pandemic.
Court: USDC Eastern District of New York, Judge: Matsumoto, Filed On: September 29, 2023, Case #: 1:20cv6028, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities, Covid-19, Class Action
J. Marbley grants the capital investment firm's motion to dismiss, ruling that while it was the main financer of the startup loan company, there is no evidence it counseled executives on what financial disclosures to make before the startup's stock price plummeted; therefore, it cannot be held liable for any securities violations. Meanwhile, statements made by the startup company about the efficacy and advantages given by its proprietary AI model are objectively verifiable through metrics put forth by the class of investors in its complaint; therefore, the securities claims related to those misstatements will not be dismissed.
Court: USDC Southern District of Ohio, Judge: Marbley, Filed On: September 29, 2023, Case #: 2:22cv2935, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, Class Action
J. Seybert adopts a magistrate judge’s report and recommendation and dismisses the two remaining claims in a class action federal securities fraud suit that alleged a health food and personal care product manufacturer concealed from investors that its business was declining due to increased competition in a market that it had previously dominated. The court concurs with the magistrate judge’s ruling that the financial statements, which claimed its high sales volume were attributed to strong consumer demand, are not actionable, and further overrules the investors’ objections that argued the company had sufficient knowledge of their omissions or misstatements for purposes of scienter.
Court: USDC Eastern District of New York, Judge: Seybert, Filed On: September 29, 2023, Case #: 2:16cv4581, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities
J. Amon dismisses a class action securities fraud complaint brought on behalf of stockholders of an industrial materials company alleging omissions made during merger negotiations that exaggerated the commercialization prosects of its holography, lithography and wireless sensing products as well as the company’s relationship with Lockheed Martin and Airbus to develop holographic optical filter eyewear products for use by commercial, military and law enforcement pilots. The court finds the statements are not actionable under federal securities laws and the complaint fails to allege scienter.
Court: USDC Eastern District of New York, Judge: Amon, Filed On: September 29, 2023, Case #: 1:21cv7203, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities, Class Action
J. Shah grants a collection of securities firms’ motions to dismiss two investment firms’ fraud and securities act violation complaints. The investment firms claim the securities firms flashed quotes on SPX Options to influence the calculation of the Volatility Index, causing the Index to increase out of proportion with the S&P 500’s actual volatility and artificially inflating the prices of S&P 500 Futures options on which the investment firms traded. The court, however, finds that one of the investment firms has not stated any injury that could give them standing, while the other’s claims have passed their statute of limitations.
Court: USDC Northern District of Illinois, Judge: Shah, Filed On: September 28, 2023, Case #: 1:19cv368, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Commerce, Fraud, securities
J. Gilman finds that district court properly dismissed a securities case against a pest control company. While several statements made by the company about its liability for a termite outbreak in several states may have misled investors to a certain extent, the class of investors failed to prove the level of scienter required for its securities claims, especially considering the company released statements about financial issues after arbitration awards against it. Affirmed.
Court: 6th Circuit, Judge: Gilman, Filed On: September 28, 2023, Case #: 22-5981, Categories: Fraud, securities, Class Action
J. Menendez rules in favor of the SEC in a securities action against the companies alleging that they bought and sold billions of newly issued shares of microcap securities without registering as or associating with a dealer. There is undisputed evidence showing that the companies bought and sold securities as part of a regular business under the meaning of the Securities Exchange Act and the dealer definition. The companies conceded that they never registered with the SEC as a dealer and there is no dispute that neither the individual nor the company associated with any entity that was registered as a dealer. The companies cannot assert an advice-of-counsel defense because there was neither complete disclosure of relevant facts or a request for the advice which would have allowed any reliance on that advice to be in good faith.
Court: USDC Minnesota, Judge: Menendez, Filed On: September 27, 2023, Case #: 0:21cv2114, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities
[Consolidated.] J. Bennett grants Under Armour’s motion to dismiss allegations of misrepresentations to the company’s shareholders about its performance and consequent loss in sales. The shareholders collectively filed putative actions for alleged violations of securities laws because the company and its executives hid the company’s losses from shareholders. However, these actions are pending, so the company’s dismissal is granted until the actions are resolved. Also, the court does not have subject matter jurisdiction until those actions are resolved.
Court: USDC Maryland, Judge: Bennett, Filed On: September 27, 2023, Case #: 1:20cv3390, NOS: Stockholders’ Suits - Contract, Categories: Civil Procedure, securities, Jurisdiction
J. Seybert preserves a stockholders' suit that alleges a private investment firm dealing in metals commodities made various misrepresentations to lure investors into providing investment funds and then used those funds for personal use and to pay off debts. The firm argues that the investors suffered no actual injuries because they were all given shares in a separate company in exchange for their initial investments, but the investors allege they never received any documents to effectuate the transfer of those shares.
Court: USDC Eastern District of New York, Judge: Seybert, Filed On: September 26, 2023, Case #: 2:21cv4444, NOS: Stockholders’ Suits - Contract, Categories: Fraud, securities
J. Chen preserves for the most part a securities fraud lawsuit against an IT portfolio management company alleging false or misleading statements made in its NASDAQ registration filings concerning its plans to acquire majority stakes in two Chinese-based financial companies as well as the assets of a third company located in Beijing. The shareholders did not simply rehash a market analyst research report that first revealed the misrepresentations for the purposes of their complaint, but had in fact corroborated the report from publicly available sources.
Court: USDC Eastern District of New York, Judge: Chen, Filed On: September 25, 2023, Case #: 1:21cv6461, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities
J. Azrack dismisses a securities fraud lawsuit filed against a real estate investment trust alleging false or misleading statements it made in several press releases. Although the trust claimed it was working to maximize its corporate stock value for all stockholders, the deals it ultimately made to sell the company's assets and merge with a non-party benefitted only common stockholders and left preferred stockholders with significant losses when the company's stock value plummeted more than 55% in a single trading day on news of the agreements. The statements, consisting mostly of corporate buzzwords, are immaterial and therefore not actionable.
Court: USDC Eastern District of New York, Judge: Azrack, Filed On: September 25, 2023, Case #: 2:20cv4031, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities