450 results for 'cat:"Securities"'.
J. Merkl grants preliminary approval to a $6.75 million settlement to resolve a putative class action brought by investors against a mining firm alleging false or misleading statements made regarding the size, scope and duration of a proposed copper and gold mine in Bristol Bay, Alaska. The EPA subsequently blocked the project under provisions of the Clean Water Act to much fanfare from environmentalists, citing adverse effects to local salmon fisheries and wetlands. On news of the ruling, the company's stock price fell to $0.9 per share, resulting in heavy investor losses.
Court: USDC Eastern District of New York, Judge: Merkl, Filed On: August 25, 2023, Case #: 1:20cv5917, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Settlements, securities, Class Action
J. Snauffer finds that the Public Utilities Commission erred in imposing $2.7 million in penalties on several rural telephone companies and denying their petition for rehearing. The companies properly relied on a 2006 Commission decision that laid out the disclosure requirements for public utilities selling company assets. The Commission failed to provide the companies the fair notice required by due process of the disclosure requirements it cited in assessing the penalties.
Court: California Courts Of Appeal, Judge: Snauffer, Filed On: August 24, 2023, Case #: F083940, Categories: Communications, securities, Due Process
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J. Arterton grants the receiver's motion for a partial stay of liquidation proceedings, ruling the unique assets of the embezzler's family will not be liquidated, given the court has yet to determine if they are subject to disgorgement and the $103 million obtained through liquidation of non-unique assets may be sufficient to cover the penalties and taxes owed on the judgment.
Court: USDC Connecticut, Judge: Arterton, Filed On: August 23, 2023, Case #: 3:15cv675, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Civil Procedure, Fraud, securities
J. Lohier finds that the district court improperly held that accounting errors that led an insurer to restate five years' worth of financial reports constituted misstatements amounting to opinion. The company's method for recognizing revenue on extended warranty contracts and expenses on discretionary employee bonuses was objectively misleading and did not represent an exercise in subjective judgment.
Court: 2nd Circuit, Judge: Lohier, Filed On: August 23, 2023, Case #: 20-1643-cv, Categories: Fraud, securities, Class Action
J. Cote partially denies the cryptocurrency exchange's motion to dismiss Electronic Fund Transfer Act claims stemming from its alleged failure to implement adequate security protections for accountholders. The accountholders may recover only statutory damages, not actual damages, for the alleged violations because there is no "substantial nexus" between the violation and their losses.
Court: USDC Southern District of New York, Judge: Cote, Filed On: August 23, 2023, Case #: 1:22cv1602, NOS: Other Personal Property Damage - Torts - Personal Property, Categories: securities, Damages, Technology
J. Block grants a motion to dismiss a class action securities fraud suit filed against the operator of an online platform geared towards LGBTQ users in Asia, alleging it downplayed or omitted in its IPO documentation the effects the Chinese government’s recent crackdown on gay content would have on its future business operations. Within a year of trading on the stock market, the company’s stock price fell by more than 50%, resulting in heavy losses for investors. The court finds the China’s stance on LGBTQ rights was public knowledge and available to any discerning investor at the time, thus the company is shielded from liability for the losses.
Court: USDC Eastern District of New York, Judge: Block, Filed On: August 22, 2023, Case #: 1:21cv4044, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities, Lgbtq, Class Action
J. Flanagan grants the Securities and Exchange Commission its motion to stop multiple corporations from practicing trade after they were accused of fraud. One of the corporations’ representatives was sentenced to two years in prison and agreed to make back payments totaling over $520,000 to the IRS and $160,000 as a civil penalty to the Securities and Exchange Commission. The corporations owe over $200,000 to the commission as well.
Court: USDC Eastern District of North Carolina, Judge: Flanagan, Filed On: August 22, 2023, Case #: 5:19cv243, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, Trade
J. Bacharach finds that the lower court properly tosses class securities claims against SpiritAeroSystems alleging that the company has engaged in securities fraud as a result of decreased sales and some accounting control issues. The most significant reason for the loss in sales was the fact that the company made parts for a Boeing airplane that eventually stopped being produced, but there is no meaningful evidence on the record that implies the company knew about the production halt. Affirmed.
Court: 10th Circuit, Judge: Bacharach, Filed On: August 21, 2023, Case #: 22-5013, Categories: securities
J. Gorton partially allows a company’s motion to dismiss claims of securities fraud and tortious interference with a contract brought against it via class action by an asset management firm. It is unclear at this time if the firm’s claim of tortious interference with a contract is untimely. The firm’s securities fraud claims are untimely. The firm’s amended complaint cannot be dismissed for failure to state a claim because it plausibly argues that the company acted without justification by deliberately avoiding following the rights agreement they were obligated to follow.
Court: USDC Massachusetts, Judge: Gorton, Filed On: August 18, 2023, Case #: 1:22cv11315, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, Contract
J. Robart grants the pension trust's motion to appoint it as the lead plaintiff in this securities fraud class action accusing Funko and two of its executive officers of not disclosing material facts about Funko's business and operations and artificially inflating its common stock. The pension trust should be the lead plaintiff because it has the largest financial interest in this case, with losses totaling $619,800, and the pension trust established a prima facie showing of typicality and adequacy by proving that it purchased Funko shares and basing its claims on the same legal theories as the rest of the class.
Court: USDC Western District of Washington, Judge: Robart, Filed On: August 17, 2023, Case #: 2:23cv824, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, Class Action
J. Bumb rules in part for executives accused of issuing false and misleading statements regarding the impact of royalty streams and generic drug pricing on company revenue. Trades made by the former CEO do not show motive to defraud since they were made under a 10b5-1 plan; the CEO's and former CFO's comments about overall drug prices do not indicate they knew about price determinations for each drug; and the former CFO was not a member of the drug pricing committee. However, investors plausibly demonstrated the company engaged in a price-fixing scheme for generic drugs by working with competitors.
Court: USDC New Jersey, Judge: Bumb, Filed On: August 17, 2023, Case #: 1:16cv2805, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities
J. Johnson denies the securities sellers' motion for summary judgment, ruling the promissory note signed over to them by the investor qualifies as a security under federal law, while statements about the startup's income, which is purported to be $10 million but is actually less than $100,00 annually, and the potential return on investment are sufficient at this stage to show reckless disregard on behalf of the sellers.
Court: USDC New Mexico, Judge: Johnson, Filed On: August 15, 2023, Case #: 1:21cv564, NOS: Other Contract - Contract, Categories: Fraud, securities, Contract
C.J. Johnson denies the startup's motion for summary judgment, ruling disclosures about its stock price to the investor were not sufficient for the investor to believe there was an obvious risk he would lose his entire $750,000 investment. Furthermore, the claim he did not read the promissory note before signing it is irrelevant because the note said nothing about the company's performance, only that his money would be repaid with interest within one year.
Court: USDC New Mexico, Judge: Johnson, Filed On: August 15, 2023, Case #: 1:21cv564, NOS: Other Contract - Contract, Categories: Fraud, securities, Contract
J. Martinez-Olguin dismisses accounting malpractice claims against an accounting company accused of helping the Zachary Horwitz Ponzi scheme. The scheme revolved around Horwitz using investment funds to purchase movie rights, but lying to investors about his relationship with several major streaming companies and using fake agreements and emails to raise the money. The complaint has not pinpointed exactly how and when the accounting company lied to investors that the money in the scheme was being used as promised. The complaint does not provide a timeline of when the alleged lies were made or to whom they were made, and are largely "too general" to survive.
Court: USDC Northern District of California, Judge: Martinez-Olguin , Filed On: August 15, 2023, Case #: 3:23cv287, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities, Accounting Malpractice
J. Pitman denies a broker’s motion to dismiss a lawsuit brought by financial regulators over his role in an alleged “massive fraudulent binary options trading scheme.” The broker, a Canadian, argued this court did not have jurisdiction, but the broker absolutely had sufficient contacts in the United States to give federal courts jurisdiction, including because he “singled out customers in the United States.”
Court: USDC Western District of Texas , Judge: Pitman, Filed On: August 15, 2023, Case #: 1:20cv908, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, Jurisdiction
Chancellor McCormick appraises fair value of a company at $14.83 per share at the time of a controlling stockholder's acquisition for $15 per share by making slight adjustments in light of valuation methodologies of the DCF analysis and the comparable companies analysis proffered by opposing parties.
Court: Delaware Chancery Court, Judge: McCormick, Filed On: August 14, 2023, Case #: 2020-0165-KSJM, Categories: securities
Chancellor McCormick finds that an investor was fraudulently induced to invest in a cancer research foundation that promised a commercialized test to diagnose individuals with high risk for breast cancer. Through these misrepresentations, the investor prevails on four claims for breach of contract, declaratory relief, violation of the Delaware Securities Act and fraudulent inducement.
Court: Delaware Chancery Court, Judge: McCormick, Filed On: August 10, 2023, Case #: 12438-CM, Categories: Fraud, securities, Contract
J. Wesley finds that the district court improperly certified a class of shareholders on remand of claims contending executives committed securities fraud in statements concerning the management of conflicts of interest at Goldman Sachs because shareholders did not establish a firm link between Goldman's corrective disclosures on conflict and prior alleged misstatements that caused stock prices to drop. Reversed.
Court: 2nd Circuit, Judge: Wesley, Filed On: August 10, 2023, Case #: 22-484, Categories: Fraud, securities, Class Action
[Consolidated.] Per curiam, the circuit finds that the district court properly awarded $16.8 million to the liquidation trustee for Bernard L. Madoff Investment Securities as money owed for recoverable transfers from the Madoff Ponzi scheme. The "net investment method" used to value accounts has been the preferred construct for Madoff clients, since going by "profits" recorded over time on customer statements would be illusory. Affirmed.
Court: 2nd Circuit, Judge: Per curiam, Filed On: August 10, 2023, Case #: 22-1107(L), Categories: Fraud, securities