156 results for 'cat:"Fraud" AND cat:"Securities"'.
J. Stewart denies the real estate developer executives' motions for rehearing on their convictions for conspiracy to commit wire fraud and securities fraud and aiding and abetting securities fraud. Arguments regarding the sufficiency of evidence, jury instruction, and limiting cross-examination do not warrant a new trial. Arguments involving imposed time limits due to the number of defendants fail because objections were not preserved at trial and the record states that more time would have been granted if requested. There is no cumulative error because no errors have been identified and the government has presented substantial evidence of guilt. Affirmed.
Court: 5th Circuit, Judge: Stewart, Filed On: October 11, 2023, Case #: 22-10511, Categories: Evidence, fraud, securities
J. Walter dismisses the investors' complaint alleging that the real estate investment company authorized false and misleading statements about its real estate assets. The investors claim that the real estate investment company made misleading statements about IRR and distribution projections because it did not disclose the SEC letter, but the SEC letter was available to the public on Jul. 31, 2018, on the SEC's Edgar database before the named investor made his initial funds investment on Sep. 23, 2019.
Court: USDC Central District of California, Judge: Walter, Filed On: October 4, 2023, Case #: 2:20cv8499, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Class Action
J. Selna grants a bank's motion to dismiss a shareholder's allegations of fraud under the Financial Institutions Reform, Recovery, and Enforcement Act following the Silicon Valley Bank failure. The shareholder alleges that the bank was taken over by regulators just days after representing that it had strong business fundamentals, that bank officers misrepresented the facts and that they did not disclose in updates that FDIC examiners had raised concerns. The shareholder has not exhausted his administrative remedies.
Court: USDC Central District of California, Judge: Selna, Filed On: October 2, 2023, Case #: 8:23cv1206, NOS: Other Fraud - Torts - Personal Property, Categories: fraud, securities
J. Marbley grants the capital investment firm's motion to dismiss, ruling that while it was the main financer of the startup loan company, there is no evidence it counseled executives on what financial disclosures to make before the startup's stock price plummeted; therefore, it cannot be held liable for any securities violations. Meanwhile, statements made by the startup company about the efficacy and advantages given by its proprietary AI model are objectively verifiable through metrics put forth by the class of investors in its complaint; therefore, the securities claims related to those misstatements will not be dismissed.
Court: USDC Southern District of Ohio, Judge: Marbley, Filed On: September 29, 2023, Case #: 2:22cv2935, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Class Action
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J. Shah grants a collection of securities firms’ motions to dismiss two investment firms’ fraud and securities act violation complaints. The investment firms claim the securities firms flashed quotes on SPX Options to influence the calculation of the Volatility Index, causing the Index to increase out of proportion with the S&P 500’s actual volatility and artificially inflating the prices of S&P 500 Futures options on which the investment firms traded. The court, however, finds that one of the investment firms has not stated any injury that could give them standing, while the other’s claims have passed their statute of limitations.
Court: USDC Northern District of Illinois, Judge: Shah, Filed On: September 28, 2023, Case #: 1:19cv368, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Commerce, fraud, securities
J. Gilman finds that district court properly dismissed a securities case against a pest control company. While several statements made by the company about its liability for a termite outbreak in several states may have misled investors to a certain extent, the class of investors failed to prove the level of scienter required for its securities claims, especially considering the company released statements about financial issues after arbitration awards against it. Affirmed.
Court: 6th Circuit, Judge: Gilman, Filed On: September 28, 2023, Case #: 22-5981, Categories: fraud, securities, Class Action
J. Seybert preserves a stockholders' suit that alleges a private investment firm dealing in metals commodities made various misrepresentations to lure investors into providing investment funds and then used those funds for personal use and to pay off debts. The firm argues that the investors suffered no actual injuries because they were all given shares in a separate company in exchange for their initial investments, but the investors allege they never received any documents to effectuate the transfer of those shares.
Court: USDC Eastern District of New York, Judge: Seybert, Filed On: September 26, 2023, Case #: 2:21cv4444, NOS: Stockholders’ Suits - Contract, Categories: fraud, securities
J. Chen preserves for the most part a securities fraud lawsuit against an IT portfolio management company alleging false or misleading statements made in its NASDAQ registration filings concerning its plans to acquire majority stakes in two Chinese-based financial companies as well as the assets of a third company located in Beijing. The shareholders did not simply rehash a market analyst research report that first revealed the misrepresentations for the purposes of their complaint, but had in fact corroborated the report from publicly available sources.
Court: USDC Eastern District of New York, Judge: Chen, Filed On: September 25, 2023, Case #: 1:21cv6461, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities
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. 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
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
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. 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. 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