453 results for 'cat:"Securities"'.
J. Komitee dismisses a shareholders’ suit against JPMorgan Chase for its alleged failure to disclose the widespread use of unapproved communications channels among its employees, which resulted in a $200 million civil penalty issued by the Securities and Exchange Commission. The shareholder fails to plead material misstatements, false or misleading statements or omissions regarding the financial institution’s risk controls in its 2021 proxy statement.
Court: USDC Eastern District of New York, Judge: Komitee, Filed On: March 14, 2024, Case #: 1:22cv1331, NOS: Stockholders’ Suits - Contract, Categories: securities
J. Walker finds that the district court improperly upheld an enforcement action against a senior partner at a private equity firm accused of breaching fiduciary duties to funds he advised because he could not have reasonably foreseen that his expense reports for phony business expenditures would be paid by the funds and not by his then-employer. Reversed.
Court: 2nd Circuit, Judge: Walker, Filed On: March 13, 2024, Case #: 20-4080-cv, Categories: securities, Fiduciary Duty
J. Biggs grants a stockholder’s motion for entry of default judgment against an investment company after he alleges the company failed to issue him 200,000 shares he purchased for $100,000. Although the company claims it would not return the stockholder’s investment because it had fallen victim to an attempt to defraud it, it is still subject to the contract with the stockholder to return his investment, now with interest.
Court: USDC Middle District of North Carolina, Judge: Biggs, Filed On: March 12, 2024, Case #: 1:23cv345, NOS: Other Contract - Contract, Categories: Commerce, securities, Contract
Chancellor McCormick appraises the fair value of Class A common stock at $15.44 per share at the time of a merger by combining the comparable companies analysis with the DCF analysis, making slight adjustments and averaging the two.
Court: Delaware Chancery Court, Judge: McCormick, Filed On: March 12, 2024, Case #: 2020-0165-KSJM, Categories: securities
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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. Gilliam allows a single securities claim to survive against Tricida, a pharmaceutical company, over its proposed kidney disease drug Veverimer. Investors claim that the company misrepresented how well the drug was doing during clinical trials and didn't tell them soon enough that it was unlikely to get FDA approval, but the investors have not shown how the company's press statements and earnings calls were deliberately misleading. The only claim that survives is one based on the company's decision to cancel an advisory meeting under the guise of Covid-19 issues, when it appears to have been canceled because of word from the FDA that the drug's clinical trials were having major issues.
Court: USDC Northern District of California, Judge: Gilliam, Filed On: March 11, 2024, Case #: 4:21cv76, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities
J. Halpern partially denies the company's motion to dismiss claims arising out of an equity purchase agreement. The agreement does not provide any legal consequence for late delivery of an earn-out calculation statement, and the court declines to impose one. However, the purchaser may pursue a breach of contract claim to the extent it is based on failure to provide access to books and records.
Court: USDC Southern District of New York, Judge: Halpern, Filed On: March 11, 2024, Case #: 7:21cv7920, NOS: Other Contract - Contract, Categories: securities, Contract
J. Nathan finds that the district court improperly dismissed extraterritorial class claims brought against international crypto exchange Binance for the sale of allegedly unregistered securities called "tokens." The transactions were domestic since the buyers made irrevocable purchases from their home states on servers operated by the exchange in the U.S., and the claims were not untimely because they did not accrue until after the purchases were made. Reversed.
Court: 2nd Circuit, Judge: Nathan, Filed On: March 8, 2024, Case #: 22-972, Categories: Civil Procedure, securities, Class Action
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
J. Chen grants a non-party creditor’s motion to intervene in a Securities and Exchange Commission enforcement action. The creditor provided the defendant, who is accused of perpetrating an investment scheme, five loans totaling more than $21 million. It requests the release of the loans’ collateral from an asset-freezing preliminary injunction issued in the case, including 11 condominium units and two time certificates of deposits. The creditor argues that, in the time since the debtor made any interest payments on the loans, the value of the properties have decreased considerably, jeopardizing its ability to make back its money. The court finds releasing the assets will help the creditor better protect its financial interests.
Court: USDC Eastern District of New York, Judge: Chen, Filed On: March 4, 2024, Case #: 1:21cv5350, NOS: Securities/Commodities/Exchange - Other Suits, Categories: Debt Collection, securities
J. Winmill grants the SEC's motion for remedies against a crypto investment broker who allegedly lured investors into investing millions of dollars in his crypto investment company through false representations, then misappropriated those funds for his personal use. The broker also offered and sold unregistered securities. The company and broker shall disgorge $5,257,563 in ill-gotten gains plus $127,454 in pre-judgment interest. The court also imposes a civil penalty of $6,899,969, the amount of the broker's gross amount of pecuniary gain.
Court: USDC Idaho, Judge: Winmill, Filed On: March 4, 2024, Case #: 2:21cv103, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities
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. Navarro grants the winery's motion to dismiss stockholders' claims the winery committed securities fraud, which caused the value of its stocks to decline. The new company, just months after going public, disclosed material internal accounting failures and then hired a CFO with public company experience along with more accounting staff. The stockholders make no particularized allegations the winery was intentionally fabricating accountings, knew it was violating accounting principles or was deliberately reckless in not investigating inventory.
Court: USDC Nevada, Judge: Navarro , Filed On: March 1, 2024, Case #: 2:22cv1915, NOS: Securities/Commodities/Exchange - Other Suits, Categories: securities, Accounting Malpractice, Business Practices
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. Gonzalez grants partial summary judgment and finds a Canadian augmented reality advertising firm liable on two investor’s breach of contract claim alleging the firm violated an agreement allowing investors to convert their stock warrants into shares conditioned upon certain criteria. The company was not allowed to accelerate the warrants’ expiration because its stock price had not maintained a value of $0.75 for 10 consecutive days, as stipulated under the agreement. The court leaves the question of damages for a jury to determine.
Court: USDC Eastern District of New York, Judge: Gonzalez, Filed On: February 23, 2024, Case #: 2:20cv3880, NOS: Other Contract - Contract, Categories: securities, Contract