450 results for 'cat:"Securities"'.
J. Higginbotham finds the district court, sitting as appellate court, properly dismissed the asset manager’s appeal of the bankruptcy court’s dismissal of its objection to an order to pay professional fees associated with a complex bankruptcy proceeding. The asset manager fails to establish that the adversary proceeding impacts it other than speculatively. Case law pointed to in an attempt to argue that inclusion in the interests supports a right of action addresses only shareholder claims against a federal agency under the Administrative Procedure Act, and is not a bankruptcy case, doesn’t address the bankruptcy code, the person aggrieved standard, or issues related to the appeal.
Court: 5th Circuit, Judge: Higginbotham, Filed On: July 19, 2023, Case #: 22-10575, Categories: Bankruptcy, securities, Business Expectancy
J. Sykes finds that the investors did not prove their securities fraud claims alleging that the attorney is liable for damages regarding their $360,000 investment into a failed jet fuel proposition. The investors do not prove that the attorney sold or offered to sell the investors security. They provide only an email from the attorney and the company's managing member soliciting investment money for the jet fuel transaction, which does not qualify the attorney as a seller for the purposes of a securities or fraud claim.
Court: USDC Central District of California, Judge: Sykes, Filed On: July 17, 2023, Case #: 8:21cv389, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities
J. Tipton consolidates two class securities actions against Southwest Airlines and appoints a lead plaintiff. Of the four individuals who pursued the role, the chosen individual is the most adequate for lead plaintiff, as he has a large financial interest in the case, and satisfies the typicality and adequacy requirements.
Court: USDC Southern District of Texas, Judge: Tipton, Filed On: July 15, 2023, Case #: 4:23cv115, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Civil Procedure, securities, Class Action
J. Failla partially denies the S&P's motion to dismiss this "double-pronged" antitrust and copyright action stemming from the agency's administration of the CUSIP Service Bureau, which creates numeric identifiers for each specific U.S. security. The investors sufficiently allege that the S&P's policy of allowing third-party vendors to distribute data only to users who have signed subscription agreements may be intended purely to eliminate competition.
Court: USDC Southern District of New York, Judge: Failla, Filed On: July 14, 2023, Case #: 1:22cv1929, NOS: Antitrust - Other Suits, Categories: Antitrust, Copyright, securities
J. Hartz finds that the lower improperly issued a judgment in favor of a poultry company in a class securities dispute that alleged the company made a series of misleading statements to investors regarding its business operations and other financial results data. The lower court dismissed the second amended complaint but did not first properly address its sufficiency and improperly found it was barred by the statute of repose. The matter is remanded for further proceedings on the sufficiency of the amended complaint. Reversed.
Court: 10th Circuit, Judge: Hartz, Filed On: July 13, 2023, Case #: 21-1445, Categories: Civil Procedure, securities, Class Action
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J. Barbadoro grants an injunction and $111,614 civil penalty against a user-owned digital content platform for offering unregistered crypto asset securities in violation of Section Five of the Securities Act. The platform continued to offer these unregistered securities even after the lawsuit against them was filed and it was clear that the SEC required that they register, which demonstrates a risk of future offending and makes the offenses that have occurred more serious than merely failing to register.
Court: USDC New Hampshire, Judge: Barbadoro, Filed On: July 11, 2023, Case #: 1:21cv260, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities, Injunction
J. Seitz finds that the lower court properly held that a shareholder of an over-the-counter, publicly-traded company that "went dark" in 2013 did not need to be subjected to confidentiality restrictions to obtain books and records. The court properly exercised its discretion in finding that weak arguments had been made against disclosing financial statements when weighed against the shareholder's identified interests in the financial statements. Affirmed.
Court: Delaware Supreme Court, Judge: Seitz, Filed On: July 10, 2023, Case #: 442, 2022, Categories: securities, Discovery
J. Lagoa finds that the district court improperly ruled that the pension fund lacked standing to bring its Exchange Act claims in a securities class action against the corporation arising from the corporation's misrepresentations and partial disclosures concerning a fraud scheme to artificially inflate its stock price. However, the district court correctly dismissed the pension fund's second amended action for failure to sufficiently plead loss causation. News articles and announcements of lawsuits and investigations into the corporation's allegedly fraudulent practices did not qualify as corrective disclosures. Affirmed in part.
Court: 11th Circuit, Judge: Lagoa, Filed On: July 10, 2023, Case #: 22-10633, Categories: securities, Class Action
J. Liman partially grants the SEC's motion to compel production of documents in a lawsuit over an alleged scheme to defraud investors by releasing misleading information about RenovaCare and its experimental device for treating burn wounds called the "SkinGun." The agency may seek documents from the company's consultant because he was closely integrated into the company's business and involved in helping with key tasks. However, the SEC has not shown the consultant was a de facto employee.
Court: USDC Southern District of New York, Judge: Liman, Filed On: July 10, 2023, Case #: 1:21cv4777, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities, Discovery
J. Freeman dismisses securities claims against AcelRx Pharmaceuticals that alleged the company made misleading claims about the risks and benefits of its opioid drug, Dsuvia. While the company was slapped with a warning by the FDA regarding some of its advertising, there is no proof the company tried to falsify any data or studies to the FDA. The company ultimately complied with FDA regulations and provided its advertising materials for review.
Court: USDC Northern District of California, Judge: Freeman , Filed On: July 7, 2023, Case #: 5:21cv4353, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities
J. Ramos grants the cryptocurrency seller's motion to set aside a default judgment in favor of investors who allege securities fraud, violations of the Racketeer Influenced and Corrupt Organizations Act, and various common law causes of action. The seller filed his motion to set aside the judgment more than 2 years after it was entered on the basis that he was unable to answer the complaint because he was incarcerated and subject to COVID-19 lockdown protocols. The investors would not be prejudiced by setting aside the judgment and make no argument showing that litigating the claims would lead to discovery difficulties. The seller is currently incarcerated, giving him no greater opportunity for fraud upon vacating the default.
Court: USDC Southern District of New York, Judge: Ramos , Filed On: June 30, 2023, Case #: 1:20cv4650, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, Racketeering
J. Carter grants the SEC's motion for summary judgment for liability as to the investment advisor's violations of several securities and investing acts. The advisor was convicted criminally for securities fraud, investment adviser fraud and wire fraud, having used investor funds to pay for company operational expenses and for his personal benefit. There is ample undisputed evidence in the civil and criminal record satisfying the elements necessary to prove liability for the violations.
Court: USDC Southern District of New York, Judge: Carter , Filed On: June 29, 2023, Case #: 1:19cv5895, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities
J. Engelmayer denies the asset management company's motion for reconsideration of a ruling granting in part the technology company's motion to dismiss the claim alleging that the asset management company conspired to depress the price of the tech company's depositary shares and stock in order to pay the tech shareholders an unfairly low price when taking the company private during merger. Pleadings did not plausibly allege that the tech company's value exceeded the merger price, or that the asset management company could have secured the price.
Court: USDC Southern District of New York, Judge: Engelmayer , Filed On: June 29, 2023, Case #: 1:19cv10067, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities, Business Expectancy
J. Gonzalez rules in favor of the Securities and Exchange Commission on securities fraud claims brought against a New Jersey resident that showed he solicited funds from investors by falsely claiming his company owned patents to cold cracking technology, an emerging oil industry technology that converts heavy crude oil into light oil, when in truth, his company simply had a minority interest in a now-defunct company that had the option to purchase the patents once they were approved. The court also enters judgment against a separate partner on one claim for aiding and abetting. However, the court finds genuine materials of fact preclude the court from issuing a ruling on whether the two defendants deceptively misappropriated investor funds for their own benefit and allows those claims to be decided at trial.
Court: USDC Eastern District of New York, Judge: Gonzalez, Filed On: June 28, 2023, Case #: 1:18cv5075, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities
[Consolidated.] J. Park finds that the district court properly calculated disgorgement at $64 million in civil enforcement claims regulators brought against an investment adviser after his criminal indictment for insider trading uncovered a decade of thefts from his employer and clients. Precedent and amendments made to the exchange act authorize disgorgement as a remedy, and the sum reasonably approximated profits gained in the wrongdoing. However, any gains on assets that had been frozen must be addressed on remand to evaluate possible relationships to fraud. Affirmed in part.
Court: 2nd Circuit, Judge: Park, Filed On: June 28, 2023, Case #: 21-1686 (L), Categories: securities, Damages
J. Graves finds the district court improperly entered an order appointing a receiver over all corporations and entities controlled by the real estate developer who partnered with a Chinese broker to offer and sell investment loans to Chinese investors. Approximately $23.7 million in investor funds were comingled and misused before the SEC filed suit. Under guiding case law, the SEC could have sought an injunction freezing asset transfers while it traced the funds and determined which entities should be placed in the receivership, which it did not. Vacated.
Court: 5th Circuit, Judge: Graves , Filed On: June 28, 2023, Case #: 22-11132, Categories: Real Estate, securities, Injunction
[Consolidated.] J. Silvain grants, in part, the bankrupt company's motion to compel discovery in a fraudulent inducement case, ruling that inquiries about the purchasing company's financial state at the time it failed to make payments to the bankrupt company, which ultimately led to its dissolution, are integral to the case and must be answered with financial documents or other relevant information.
Court: USDC Southern District of Ohio, Judge: Silvain, Filed On: June 27, 2023, Case #: 3:17cv347, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, Discovery
J. Devine finds the court of appeals improperly ruled in favor of the founders of a law firm who redeemed the shares of a recently departed member of the firm. The former member sued the founders, challenging their authority over his stock. The founders lacked the authority over the shares and thus did not have the legal authority to redeem them. Reversed.
Court: Texas Supreme Court, Judge: Devine, Filed On: June 23, 2023, Case #: 21-1014 , Categories: securities, Business Practices, Contract
J. Stadtmueller grants the SEC's motion to amend a judgment entered against the investors who perpetrated a fraudulent investment scheme targeting Hmong-Americans in Wisconsin and Minnesota which unlawfully raised more than $16 million, and the judgment is amended to reflect the investors' permanent ban from violating two additional sections of the Securities Act. It is further ordered that the investors are barred for two years from making any filings in any case that do not adhere to federal court rules, and the SEC's motion to strike some of these recent inappropriate and nonsensical filings, including those alleging a nonexistent contractual relationship between them and the SEC, is granted.
Court: USDC Eastern District of Wisconsin, Judge: Stadtmueller, Filed On: June 21, 2023, Case #: 2:22cv450, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Fraud, securities, Enforcement Of Judgments