450 results for 'cat:"Securities"'.
J. McConnell finds that the trial court properly held that the parties' right to have a jury hear their shareholder dispute would be violated if a mandatory forum selection clause were enforced. The Delaware Court of Chancery is the forum designated in the applicable certificate of incorporation, but that forum would not provide the right to a jury trial as required by the California Constitution. Affirmed.
Court: California Courts Of Appeal, Judge: McConnell, Filed On: September 21, 2023, Case #: D081670, Categories: Jury, securities, Venue
J. Taubman finds the trial court erroneously excluded evidence that defendant relied on the advice of his securities lawyer when he sold investment products without disclosing to clients he was barred from selling securities in the state of Colorado. The evidence allowed defendant to prove he lacked the required mental state to commit securities fraud. Defendant's testimony about his lawyer's advice was offered to prove the effect it had on him, not for the truth of the matter asserted; therefore, it was not hearsay, and because it would have given the jury a legitimate reason to doubt whether he committed the crimes for which he was convicted, his convictions will be vacated and the case remanded. Reversed.
Court: Colorado Court Of Appeals, Judge: Taubman, Filed On: September 21, 2023, Case #: 2023COA82, Categories: Evidence, Fraud, securities
J. Snyder grants the SEC's motion for default judgment and permanently enjoins a beverage company from future violations of the Securities Act. The SEC alleges that individuals falsely promoted the company to investors, including overstating revenue and falsely claiming that the company had received acquisition offers for hundreds of millions of dollars. The SEC alleges that the individuals misappropriated half of the $15 million that the company raised and used it for personal expenses. In the absence of default judgment, the SEC would have no way to enforce the Securities Act or the Exchange Act against the company and individuals. The SEC has shown that the company is liable for fraud and that it sold stock without filing a registration statement with the SEC.
Court: USDC Central District of California, Judge: Snyder, Filed On: September 18, 2023, Case #: 2:21cv7339, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities
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J. Brimmer denies an investment management firm's motion to vacate an arbitration award in a dispute over advisory services regarding a hedge fund. The firm failed to notify clients its primary location had been moved to Florida, and failed to demonstrate the arbitrator explicitly disregarded securities law in arriving at an award.
Court: USDC Colorado, Judge: Brimmer, Filed On: September 18, 2023, Case #: 1:22cv2892, NOS: Arbitration - Other Suits, Categories: Arbitration, securities
J. Jolson grants the corporation's motion to change venue in a securities class action brought by the retirement fund from the U.S. District Court for the Southern District of Ohio to the U.S. District Court for the Northern District of Georgia. The retirement fund claims that the corporation disseminated or recklessly disregarded false and misleading statements about its positions on railway safety. The corporation's headquarters are in Atlanta and two of the executives live and work in Atlanta. The flow of information from the corporation and executives to the shareholders stems from Atlanta.
Court: USDC Northern District of Georgia, Judge: Jolson, Filed On: September 15, 2023, Case #: 1:23cv4175, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities, Venue, Class Action
J. Dorsey grants the private equity investment firm's motion for a temporary restraining order prohibiting its former employee from sharing confidential information, directing him to return it. The firm has shown a likelihood of success on its claim that trade secrets were misappropriated when the employee downloaded confidential files. The district court also grants the firm's motion to seal an exhibit to its motion and to conduct early discovery before a preliminary injunction hearing as releasing the information could potentially damage the firm.
Court: USDC Nevada, Judge: Dorsey , Filed On: September 15, 2023, Case #: 2:23cv1339, NOS: Defend Trade Secrets Act of 2016 (DTSA) - Property Rights, Categories: securities, Trade Secrets, Discovery
J. McMahon grants the Securities and Exchange Commission’s (SEC) motion for summary judgment in this matter of an alleged “pump and dump” scheme. A shareholder was a majority shareholder in a company but was dishonest in disclosing his control of the company, then worked with others to falsely promote and “pump up” the value of the stock, so that they could allegedly sell their shares at the inflated value. The instant court finds the SEC sufficiently supports its argument that the shareholder and associates engaged in deceptive and fraudulent conduct and grants the SEC's motion for summary judgment, and denies the shareholders' motion for summary judgment.
Court: USDC Southern District of New York, Judge: McMahon, Filed On: September 12, 2023, Case #: 1:21cv1772, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities
Vice Chancellor Laster grants a company summary judgment concerning stock that grants ten votes per share to "principal stockholders" because "identity-based voting" does not prohibit creation of closed sets of holders who may exercise certain rights.
Court: Delaware Chancery Court, Judge: Laster, Filed On: September 12, 2023, Case #: 2022-0824-JTL, Categories: securities
J. Hicks dismisses this suit brought by shareholders regarding an oral contract between the corporation's board of directors that contemplated one of the director’s positions and a future stock option purchase. The claims are against the corporation’s directors, though they are masked as claims against individuals, and the corporation's certificate of incorporation contains a forum selection clause that requires the claims to be litigated in Delaware’s Court of Chancery. The shareholder fails to state a claim for relief because he does not allege facts establishing that the parties validly formed an enforceable contract.
Court: USDC Nevada, Judge: Hicks, Filed On: September 11, 2023, Case #: 3:23cv39, NOS: Stockholders’ Suits - Contract, Categories: securities, Venue, Contract
J. Merriam finds that the district court properly dismissed fiduciary duty claims a noteholder brought against advisers to a collateralized loan obligation in tinkering with investments to maximize fees and boost expenses. Contract rescission could not be granted under the investment advisers act because the agreement did not require unlawful conduct. Affirmed.
Court: 2nd Circuit, Judge: Merriam, Filed On: September 7, 2023, Case #: 22-1912, Categories: securities, Fiduciary Duty
J. Chang partially grants a physical therapy agency's motion to dismiss an insurance company's fraud and securities violation claims. The insurance company claims the therapy agency's buy-out by a financial acquisition company cost investors millions when, only after the merger was complete, the agency and acquisitions company disclosed poor profit projections related to "physical-therapist attrition rates." The court dissects each of the insurance company's claims very particularly, dismissing them in part against individual actors in the therapy agency and acquisitions company, but allowing the claims against other individuals to survive.
Court: USDC Northern District of Illinois, Judge: Chang, Filed On: September 6, 2023, Case #: 1:21cv4349, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, Insurance, securities
J. Navarro denies the trader's motion to dismiss this suit alleging that he perpetrated a scheme involving "spoof" orders for gold and silver futures contracts on the commodity exchange business in order to manipulate the market. The CFTC's allegations provide sufficient factual context to render a finding of scienter plausible. The complaint alleges many facts that, taken together and accepted as true, demonstrate the trader's intent or, at least, recklessness.
Court: USDC Nevada, Judge: Navarro , Filed On: September 5, 2023, Case #: 2:22cv1258, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, Agency
Per curiam, the First District finds the trial court properly dismissed the case. The investor group argues that the court incorrectly denied a second oral motion to amend. The group has not provided a transcript or a statement of evidence, which provides an inadequate record. It is presumed that the trial court had a good reason, based on what was presented at the hearing, to deny the second motion to amend. To the extent the group argues error in the court’s denying its motion for rehearing without first conducting a hearing, it invited any alleged error by agreeing that a hearing was not necessary under the circumstances. “Invited error” doctrine prevents a party’s taking advantage of an invited error on appeal. Affirmed.
Court: Florida Courts Of Appeal, Judge: Per curiam, Filed On: September 1, 2023, Case #: 1D22-163, Categories: Property, securities, Due Process
J. Boardman partially denies a biopharmaceutical firm its motion to dismiss claims of fraud brought by stockholders after the firm allegedly misrepresented its ability to manufacture a COVID-19 vaccine. The firm publicly announced in 2020 that it was expanding its capacity to accommodate extensive production, but it did so before fixing various issues the FDA had identified in its process. Also, the firm suffered contamination and worker error and had to destroy 240 million doses. Keeping this information from stockholders amounts to business operations fraud.
Court: USDC Maryland, Judge: Boardman, Filed On: September 1, 2023, Case #: 8:21cv955, NOS: Stockholders’ Suits - Contract, Categories: Fraud, securities, Covid-19
J. Castner grants the mutual fund managers' motion to dismiss the investors' complaint seeking a judgment that the managers' enforcement of their "frequent trading policy," under which they barred the investors from trading, breached their contracts with the investors and constituted conversion, among other civil violations. The investors have failed to state claims for any of the ten counts they list, since the managers' alleged actions appear to comport with the policy, the investors have not alleged facts supporting an inference that the managers acted in bad faith or with malice, and they have not alleged that they were deprived of property in which they had an interest, nor that the managers made misrepresentations or altered records.
Court: USDC New Jersey, Judge: Castner, Filed On: August 31, 2023, Case #: 3:22cv3723, NOS: Other Contract - Contract, Categories: Fraud, securities, Contract
J. Schofield grants the company's motion to dismiss a securities class action over its failure to immediately inform investors of subsidiary Ben & Jerry's decision to stop selling its ice cream in Israel in light of the ongoing Israeli-Palestinian conflict. The B&J board's decision was contrary to the wishes of its corporate owner, which delayed implementation of the decision, and instead sold the B&J Israeli business to the company's former Israeli licensee over the protests of the B&J board. The company did not defraud investors by not immediately informing them of the board's decision because it did not know how it would be implemented.
Court: USDC Southern District of New York, Judge: Schofield, Filed On: August 30, 2023, Case #: 1:22cv5011, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, Class Action
J. Rao finds the Securities and Exchange Commission arbitrarily denied a company’s bitcoin fund after recently approving two other bitcoin futures funds for trading. The SEC failed to explain why it treated similar products differently. Vacated.
Court: DC Circuit, Judge: Rao, Filed On: August 29, 2023, Case #: 22-1142 , Categories: Administrative Law, securities
J. Kugler grants the motion of a group of funds for consolidation and appointment as lead plaintiff in a securities class action, and grants another investor's motion for consolidation while denying his motion for appointment as lead plaintiff. The group of funds has a larger financial interest in the case and are otherwise appropriate as a lead plaintiff. Another fund's motion to withdraw is granted.
Court: USDC New Jersey, Judge: Kugler, Filed On: August 29, 2023, Case #: 1:23cv2763, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities, Class Action
J. Johnson grants the investor's partial motion for summary judgment, ruling the individuals who solicited his investment in the company who lied about its earnings and growth potential can be held liable for securities violations. The evidence in the record prevents those individuals from proving they were unaware of the lies used to coerce investors.
Court: USDC New Mexico, Judge: Johnson, Filed On: August 25, 2023, Case #: 1:21cv564, NOS: Other Contract - Contract, Categories: securities, Contract
J. Fletcher finds that the district court properly dismissed a class claim against two individuals and vacated the dismissal as to claims involving another individual in a matter in which the class alleges that a graphics card manufacturer knowingly made misleading and false statements regarding the impact of cryptocurrency sales on its financial performance "to conceal the extent to which NVIDIA’s revenue growth depended on the notoriously volatile demand for cryptocurrency." Class members alleged that the three individual defendants had actual knowledge that increases in demand for the manufacturer's gaming-segment products were largely driven by crypto-related sales. Affirmed in part.
Court: 9th Circuit, Judge: Fletcher, Filed On: August 25, 2023, Case #: 21-15604, Categories: securities, Technology