156 results for 'cat:"Fraud" AND cat:"Securities"'.
Per curiam, the circuit finds that the district court properly convicted defendant of wire fraud in a scheme to induce investors to back a group developing cryptocurrency because evidence indicated defendant knowingly made false or misleading statements as to its affiliation with the United Nations to secure the investments, and some victims testified that the alleged link was key to the decision to invest. Affirmed.
Court: 2nd Circuit, Judge: Per curiam, Filed On: February 5, 2024, Case #: 22-2100-cr, Categories: fraud, Intent, securities
J. Matsumoto grants a motion to intervene filed by the district’s U.S. Attorney and stays a securities fraud action pending resolution of a related criminal case filed in the U.S. Eastern District of New York. The lead defendant in the case was indicted on charges related to the same actions that the SEC cited in its complaint, which alleges he and other individuals defrauded over 4,000 investors of more than $528 million in investment funds. The court agrees with the government’s assertions that it has a strong interest in preventing discovery in the civil case from circumventing the more limited discovery proceedings in the criminal trial.
Court: USDC Eastern District of New York, Judge: Matsumoto, Filed On: February 5, 2024, Case #: 2:23cv8953, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Discovery
J. DeSoto partially dismisses securities claims against a founder of a CBD company from an investing company that claimed it was defrauded of approximately $750,000 by being fed false statements in order to entice its investment. While the investing company has shown evidence of loss stemming from its investment, it has not shown how exactly the statements provided to it were false or how the CBD owner misused the investment funds.
Court: USDC Montana, Judge: DeSoto, Filed On: January 9, 2024, Case #: 1:22cv99, NOS: Other Fraud - Torts - Personal Property, Categories: fraud, securities
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[Amended.] J. Silva grants the Las Vegas Sands' motion to dismiss this putative securities class action. Though the trust sufficiently alleges the Sands made a material misrepresentation when certifying the company’s financial conditions had been disclosed, the loss causation allegations are deficient. The trust fails to allege the stock drops are plausibly the result of the disclosed fraud.
Court: USDC Nevada, Judge: Silva, Filed On: January 2, 2024, Case #: 2:20cv1958, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities
J. Graber finds that the district court properly entered a securities fraud conviction for defendant, who claimed that the district court improperly coerced the jurors into reaching a unanimous guilty verdict by sending them home at 4:30 p.m. with the instruction to return the next day. Simply excusing the jurors for an evening recess did not equal an instruction to them to strive for a unanimous verdict. Affirmed.
Court: 9th Circuit, Judge: Graber, Filed On: December 28, 2023, Case #: 22-10249, Categories: fraud, Jury, securities
J. Sullivan finds that the district court properly dismissed class securities fraud claims concerning safety statements about a new smoke-free alternative to traditional cigarettes. Statements tied to scientific studies that used general but subjective terms were properly treated as opinion rather than fact, and statements interpreting federal scientific data were per se "reasonable" as a matter of law under existing precedent. Affirmed.
Court: 2nd Circuit, Judge: Sullivan, Filed On: December 26, 2023, Case #: 21-2546, Categories: fraud, securities, Class Action
Per curiam, the circuit finds that the district court properly ordered $5.2 million in restitution after defendant pleaded guilty to conspiring to engage in securities fraud to meet employer commission targets. Defendant contends restitution should have been apportioned with his coconspirator in the unauthorized customer trade scheme, but the court did not abuse its discretion in finding both men equally responsible. Affirmed.
Court: 2nd Circuit, Judge: Per curiam, Filed On: December 20, 2023, Case #: 22-1547, Categories: fraud, Restitution, securities
J. Gettleman grants a clinical research company’s motion to dismiss one of its former stock holders’ contract, fraud, securities and estoppel claims. The stock holder claims the company provided him with misleading data as to the value of his shares, which in turn meant he took on a much higher tax liability than he was expecting when he sold the shares following a merger the company went through in 2021. However, the court agrees with the company that the stock holder has failed to show the company acted with fraudulent intent. The court also opines the stock holder has failed to show that the company “promised to provide him with accurate, updated fair market value information” through a separate trading platform.
Court: USDC Northern District of Illinois, Judge: Gettleman, Filed On: December 20, 2023, Case #: 1:23cv5782, NOS: Other Contract - Contract, Categories: fraud, securities, Contract
J. Rowland partially grants the defendant real estate investors’ motion to dismiss a fraud complaint brought by one of their former business partners, the plaintiff real estate investor. During a fight over the partner’s shares of their mutually owned business, the sued investors began to box plaintiff out of communications and financial documents, and using financial maneuvers to ensure he didn’t receive payouts from the company’s general partners. The court finds the plaintiff investor has sufficiently alleged this constituted securities fraud, shareholder oppression and fraudulent concealment as to one account, but dismisses his breach of fiduciary duties claims and his fraudulent concealment claims as they regard another account.
Court: USDC Northern District of Illinois, Judge: Rowland, Filed On: December 6, 2023, Case #: 1:22cv5628, NOS: Stockholders’ Suits - Contract, Categories: fraud, Real Estate, securities
J. Wilder-Domes grants a request by an investment firm and orders Louisiana’s largest public retirement system to respond to discovery requests by a private foundation in Austria seeking evidence for a criminal investigation of the foundation’s alleged loss of hundreds of millions of dollars by fraudulent purchases. The Louisiana pension system was one of several passive investors in a private equity fund that indirectly owned an Austrian company where three named executives are accused of misappropriating corporate funds. The Austrian foundation has filed similar discovery requests related to the international criminal probe with other passive investors in the federal Southern District of New York and Wisconsin.
Court: USDC Middle District of Louisiana, Judge: Wilder-Doomes , Filed On: November 24, 2023, Case #: 3:23cv365, NOS: Other Statutory Actions - Other Suits, Categories: fraud, International Law, securities
Per curiam, the circuit finds that the district court properly dismissed class securities fraud claims contending the Boston Beer company made misleading statements about the potential for future sales of a hard seltzer product line, which plateaued after precautions for the Covid-19 pandemic loosened, because the optimistic statements either constituted inactionable opinions or were "literally true without being otherwise misleading." Affirmed.
Court: 2nd Circuit, Judge: Per curiam, Filed On: November 22, 2023, Case #: 23-8, Categories: fraud, securities, Class Action
J. Shah denies a capital fund’s motion to dismiss a securities fraud complaint for lack of jurisdiction, but partially grants its motion to dismiss the complaint for failure to state a claim. Investors in the fund say they lost $1.3 million to the fund, and after its managers gave them misleading reports about its, in reality, poor performance. The court finds it has jurisdiction over the suit but dismisses most of the investors’ state-level claims and their federal securities claims. The state law negligence charge survives.
Court: USDC Northern District of Illinois, Judge: Shah, Filed On: November 21, 2023, Case #: 1:22cv1010, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Negligence
J. Buchanan finds that the trial court properly refused to dismiss a white-collar enhancement that contributed to defendant's 23-year sentence for grand theft and securities fraud. Dismissal of the enhancement was discretionary and did not become mandatory upon a finding that dismissal would not endanger public safety. Affirmed.
Court: California Courts Of Appeal, Judge: Buchanan, Filed On: November 21, 2023, Case #: D081331, Categories: fraud, Sentencing, securities
J. Jackson-Akiwumi finds that the lower court properly dismissed a securities fraud suit alleging that a proxy statement disclosing the terms of a merger contained materially misleading statements. The proxy statement contained all required disclosures, and the shareholders cannot save their claims by arguing that the disclosures were not emphasized enough. Affirmed.
Court: 7th Circuit, Judge: Jackson-Akiwumi, Filed On: November 6, 2023, Case #: 21-3234, Categories: fraud, securities
J. Kovner dismisses all securities claims against an e-wallets company and their officers, who claim the company made false and misleading statements related to Russian regulation compliances. Some of the accounting information given during earnings calls could be considered somewhat inconsistent, but there is no evidence that this correlated to any losses to investors or served as a violation of securities laws. The court grants leave to the international company for an amended complaint.
Court: USDC Eastern District of New York, Judge: Kovner, Filed On: November 3, 2023, Case #: 1:20cv6054, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities
J. Menashi finds that the district court improperly allowed securities regulators to assess additional disgorgement penalties against a company principal who kept money raised in three stock offerings. Precedent holds that disgorgement is governed by equitable limitations, and thus the lower court must determined on remand whether defrauded investors suffered financial harm in the scheme. If disgorgement is applicable, the value of the principal's surrendered stock should be credited toward the overall award.
Court: 2nd Circuit, Judge: Menashi, Filed On: October 31, 2023, Case #: 22-1658, Categories: Civil Procedure, fraud, securities
[Consolidated.] J. Brennan finds that the lower court properly convicted both defendants of fraud for "spoofing" the precious metals market by placing fake orders with no intent to trade to push the market in a certain direction. The evidence is sufficient to support defendants' conviction, showing that they placed the orders solely to manipulate the market. Affirmed.
Court: 7th Circuit, Judge: Brennan, Filed On: October 23, 2023, Case #: 23-1528, Categories: fraud, securities
J. Gardephe grants the credit rating agencies' motion to dismiss securities fraud claims alleging that it assigned false and misleadingly high ratings to auction rate securities. The investors have not plausibly alleged that the ratings issued by the agencies were fraudulent when made. Further, they cannot make a negligent misrepresentation claim under Ohio law, because the ratings were issued to investors around the world, not just to a limited class of investors.
Court: USDC Southern District of New York, Judge: Gardephe, Filed On: October 12, 2023, Case #: 1:10cv5095, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities