156 results for 'cat:"Fraud" AND cat:"Securities"'.
J. Smith dismisses the appeal for lack of its jurisdiction to review a denied, procedurally improper motion for declaratory judgment. The investment broker was sued by the Securities and Exchange Commission for fraudulently offering and selling life settlement interests. No change in law or facts call for the court to exercise its discretion to modify the decrees. A motion for declaratory judgment is not properly before the court as a motion, but as a separate action.
Court: 5th Circuit, Judge: Smith , Filed On: March 19, 2024, Case #: 23-10525, Categories: fraud, securities, Due Process
J. Rochon partially denies the corporate officers' motion to dismiss a securities class action alleging misrepresentations made in connection with a merger between a Cayman Islands shell company and a mobile app called Grab that operates in Southeast Asia, offering ride-hailing and food delivery services. Investors have sufficiently alleged that proxy statements discussing Grab's use of incentives in attracting drivers and consumers were misleading.
Court: USDC Southern District of New York, Judge: Rochon, Filed On: March 12, 2024, Case #: 1:22cv2189, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities
J. Clement finds the district court properly approved a receiver’s proposed plan of distribution of assets from a scheme to defraud seniors by selling them precious metals at inflated prices. Though the nonparty attorney argues the receiver's valuation methodology fails to consider whether individual investors received compensation, the court still has significant discretion in determining how to distribute funds of equitable receiverships. The court, in such instances, is not required to follow a particular plan in ethically distributing the assets. Affirmed.
Court: 5th Circuit, Judge: Clement , Filed On: March 7, 2024, Case #: 23-10420, Categories: fraud, securities
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J. Lin grants, in part, default judgment in this fraud and negligent misrepresentation claims brought by the SEC against promoters of a cryptocurrency, finding one of the promoters violated the Securities Exchange Act. Therefore, he is permanently restrained and enjoined from any further violations, and he is liable for disgorgement. The SEC’s request for prejudgment interest is denied, but it may enforce the judgement for disgorgement and civil penalties.
Court: USDC Western District of Washington, Judge: Lin, Filed On: March 1, 2024, Case #: 2:22cv1009, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Enforcement Of Judgments
J. Liburdi grants a resell homes technology company's motion to dismiss a group of retirement service providers' Exchange Act claims. The technology company, which launched an iBuyers real estate platform, sufficiently showed in court that it has not made misleading statements concerning its algorithm's pricing decisions.
Court: USDC Arizona, Judge: Liburdi, Filed On: February 28, 2024, Case #: 2:22cv1717, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Business Practices
J. Robinson preserves certain claims for breach of fiduciary duty, constructive fraud, negligence and violations of the North Carolina Securities Act in this lawsuit between 16 aging investors and related financial groups that allegedly recommended bad investments to the investors. Some of those allegations are well made, while others fail to warrant relief.
Court: North Carolina Business Court, Judge: Robinson, Filed On: February 26, 2024, Case #: 2024-NCBC-10, Categories: fraud, securities, Fiduciary Duty
J. Freeman denies a motion from Vidul Prakash, former CFO of a "Smart Window" company called View, to toss a complaint filed against him by the SEC. The SEC claims that the former CFO hid $28 million of warranty liabilities from investors and tried to downplay how much money the company owed to replace defective windows. The SEC has shown he had a responsibility to investors as CFO to ensure company liabilities were being reported correctly, a responsibility he did not honor.
Court: USDC Northern District of California, Judge: Freeman, Filed On: February 26, 2024, Case #: 5:23cv3300, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities
J. Ramos grants the company's motion to dismiss a securities fraud class action alleging it made false and misleading statements about its franchise model and plan to build a new company headquarters. A 2022 investigative report claiming that a majority of the company's stores were actually direct-owned and not franchised does not prove that the statements made in 2020 were false. Further, the company did not mislead investors regarding its plan to use IPO funds to purchase land for a new headquarters, and was not required to announce future transactions that were still subject to change.
Court: USDC Southern District of New York, Judge: Ramos, Filed On: February 23, 2024, Case #: 1:22cv9864, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Class Action
J. Wilson grants the SEC's motion for monetary remedies and injunctive relief for its complaint that the company owner engaged in a fraudulent investment scheme by hiding his criminal history from investors, combining personal and investment funds, misrepresenting his returns, and buying property with investment funds. The SEC shows that the company owner is likely to commit fraud in the future, because he defrauded multiple investors over several years and there is evidence that he is still soliciting victims during this case.
Court: USDC Central District of California, Judge: Wilson, Filed On: February 23, 2024, Case #: 8:19cv1174, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Injunction
J. Underhill grants the government's motion for final judgment, ruling the securities broker and his trading firm will be permanently barred from issuing any securities in the future and will also be required to disgorge over $223,000 in profits gained only through the manipulation of stock prices and the misleading of clients.
Court: USDC Connecticut, Judge: Underhill, Filed On: February 21, 2024, Case #: 3:20cv397, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, Sanctions, securities
J. Trauger denies the plaintiff nonprofit corporation's motion for a preliminary injunction and partially grants the fund defendants' dismissal motion in this lawsuit asserting claims under the federal Exchange Act, as well as the Tennessee Securities Act and the Tennessee Blue Sky Law. The complaint alleges that the defendants misrepresented that a certain fund was a success and that they failed to disclose that it "had been losing hundreds of thousands of dollars in 2021." However, the corporation fails to show irreparable harm, for purposes of the requested injunction, as it only entrusted money to the defendants. Accordingly, its alleged injury could be remedied "with economic damages at the conclusion of litigation."
Court: USDC Middle District of Tennessee , Judge: Trauger, Filed On: February 20, 2024, Case #: 3:23cv685, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Fiduciary Duty
J. Hicks grants the Securities and Exchange Commission's motion for partial summary judgment in its case against a bestselling author and wealth coach that sold oil and gas securities as an unregistered broker. No question of material fact exists that she acted as an investment adviser who failed to disclose conflicts of interest such as her entitlement to compensation for the sales. Claimed exclusions do not exempt the coach and her associates from their fiduciary duties.
Court: USDC Nevada, Judge: Hicks, Filed On: February 16, 2024, Case #: 3:22cv269, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Fiduciary Duty
J. Abrams rejects a plaintiff's objections to the consolidation of these three securities class actions against the defendant company. However, its objection to the current lead plaintiff for the consolidated action are persuasive, and the objector shall be substituted as lead plaintiff for the class' Securities Act claims and granted approval of its selected law firms as lead counsel.
Court: USDC Southern District of New York, Judge: Abrams, Filed On: February 15, 2024, Case #: 1:23cv2789, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Class Action
J. Mahan grants the gaming device supplier's motion for judgment on the pleadings on putative class securities claims filed by a pension plan arising from the supplier's alleged fraudulent inflation of its share prices via misrepresentations and omissions. Certain claims by certain plaintiffs were dismissed for lack of standing, and the class has failed to timely prosecute by filing an amended complaint. No reason has been given for this failure and no attempt to cure the questions of standing have been made.
Court: USDC Nevada, Judge: Mahan , Filed On: February 12, 2024, Case #: 2:20cv1209, NOS: Stockholders’ Suits - Contract, Categories: fraud, securities, Class Action
J. Ludwig grants summary judgment to the financial correspondent, the investment firm and the firm's founder the investors claim were involved with their transactions with a wealth management group that turned out to be a Ponzi scheme, which caused the investors to lose hundreds of thousands of dollars. The investors have failed to bring specific evidence of specific wrongdoing by the the correspondent, firm and founder, instead mostly reiterating the wrongdoing of the group and its chief, who is now in prison. The investors' claims of intentional misrepresentation, negligent misrepresentation, and claims of violations of Wisconsin statutes involving the sale of unregistered securities, fraud and unlicensed brokers fail, and the correspondent, firm and founder are dismissed. The investors have 14 days to make a case for why the firm's employee should not also be granted summary judgment.
Court: USDC Eastern District of Wisconsin, Judge: Ludwig, Filed On: February 7, 2024, Case #: 2:18cv2005, NOS: Other Contract - Contract, Categories: fraud, securities, Contract
J. Ross grants the Securities and Exchange Commission’s motion for final judgment and orders iFresh, a chain of Asian shopping markets on the East Coast, to disgorge over $1 million in ill-gotten gains and to pay $104,585 in pre-judgment interest and $550,000 in civil penalties after settling claims for federal securities violations. The shopping chain was accused of failing to disclose to investors over $12 million in payments to third parties owned and controlled by the company’s owner and his brother.
Court: USDC Eastern District of New York, Judge: Ross, Filed On: February 5, 2024, Case #: 1:22cv3200, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities
J. Caproni grants Warner Bros. motion to dismiss a securities class action alleging it made false and misleading statements in the offering materials ahead of its merger with Discovery. The investors have no alleged any actionable statements or omissions because the offering documents accurately explained the methodology the company used for calculating the number of subscribers to their streaming platforms, and Warner was not required to disclose it was changing its business strategy with respect to third-party licensing deals.
Court: USDC Southern District of New York, Judge: Caproni, Filed On: February 5, 2024, Case #: 1:22cv8171, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Class Action