156 results for 'cat:"Fraud" AND cat:"Securities"'.
J. Curiel dismisses the investors' claims that the owners of a medical imaging company fraudulently induced them to invest $3.5 million into the company through Simple Agreements for Future Equity (SAFE Notes). The investors have not shown that it is inevitable that the company will fail or that they will not recover their investment. Without sufficiently alleging economic loss, the investors cannot show that the owners of the company made misrepresentations that caused a loss.
Court: USDC Southern District of California, Judge: Curiel, Filed On: May 7, 2024, Case #: 3:22cv1917, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities
J. Cronan finds for the agency in this SEC enforcement action and orders the manager of an investment club who engaged in fraudulent investment schemes to disgorge ill-gotten profits of $1.7 million, plus interest of $339,000. In addition, the manager shall be permanently banned from working in the financial sector again due to his conscious wrongdoing and the likelihood he will continue to violate federal securities laws.
Court: USDC Southern District of New York, Judge: Cronan, Filed On: May 6, 2024, Case #: 1:19cv10299, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Agency
J. Kaplan grants the banks' motion to dismiss a class action alleging violations of the Commodity Exchange Act in connection with the marketing, sale, and management of a derivative investment product. The complaint fails to allege specific acts committed by each individual defendant, instead lumping defendants together as a group. Further, the fraud allegations do not detail exactly what fraudulent statements the bank make to investors.
Court: USDC Southern District of New York, Judge: Kaplan, Filed On: April 29, 2024, Case #: 1:23cv2866, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Class Action
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J. Whitney grants a motion to approve the consent judgment between the SEC and an agent who is hereby restrained from acting as an investment adviser, and who must pay $350,000 in fees and disgorgement in three installments.
Court: USDC Western District of North Carolina, Judge: Whitney, Filed On: April 29, 2024, Case #: 3:22cv246, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Damages
J. Batchelder finds the lower court properly granted the insurance company's motion for summary judgment on securities claims filed by investors. None of the statements included in the company's pre-IPO release meet the heightened pleading requirements of a fraud claim, but were instead historical statements of past performance that would not have misled the ordinary investor. Affirmed.
Court: 6th Circuit, Judge: Batchelder, Filed On: April 29, 2024, Case #: 23-3392, Categories: fraud, Insurance, securities
J. Ho finds the district court improperly certified the class of investors alleging the petroleum corporation fraudulently misrepresented the value of its oil field project. During certification proceedings, the investors presented new evidence in a reply brief involving an after-hours disclosure of a dry well, giving the corporation no fair opportunity to address it. The district court failed to permit the corporation to file a sur-reply responding to the evidence. Vacated.
Court: 5th Circuit, Judge: Ho , Filed On: April 25, 2024, Case #: 23-20424, Categories: Energy, fraud, securities
Per curiam, the circuit finds that the district court properly dismissed class securities fraud claims brought after a spinoff of Honeywell International filed for Chapter 11 bankruptcy due to legacy asbestos indemnity issues because the class failed to plead scienter with sufficient specificity to establish that the spinoff recklessly assured investors of its financial health while planning for bankruptcy. Affirmed.
Court: 2nd Circuit, Judge: Per curiam, Filed On: April 17, 2024, Case #: 23-668-cv, Categories: Bankruptcy, fraud, securities
J. Nye denies investors' motions to modify the scheduling order, for leave to amend, to reopen discovery and for reconsideration in a landfill acquisition project investment dispute. The investors' "newly discovered evidence could have easily been discovered at any point prior to or during this litigation." They do not cite unforeseen circumstances that prevented them from seeking the records earlier. The investors do not address their "untimely delay in requesting the records and petitioning this Court for modification, amendment, and reconsideration."
Court: USDC Idaho, Judge: Nye, Filed On: April 15, 2024, Case #: 1:20cv544, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Discovery
J. Cote grants an oil and natural gas company’s motion to dismiss in this matter of alleged securities fraud. An investment fund argues the oil company owned by the Venezuelan government engaged in a scheme to defraud investors when notes were declared invalid by an interim Venezuelan president in 2019. But the investment company failed to state a claim for which relief could be sought, so the instant court finds in favor of the oil company. Dismissed.
Court: USDC Southern District of New York, Judge: Cote, Filed On: April 8, 2024, Case #: 23cv5604, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities
J. Mendoza finds that the district court ruled improperly in part in a securities-fraud complaint against children's entertainment company Genius Brands International. The shareholders adequately pleaded that Genius fraudulently concealed its relationship with a stock promoter, as well as adequately pleaded loss causation with respect to claims that Genius misrepresented that Disney or Netflix would be acquiring the company. However, they did not adequately plead loss causation relating to Genius' alleged misrepresentations regarding its relationship with Arnold Schwarzenegger. Reversed in part.
Court: 9th Circuit, Judge: Mendoza, Filed On: April 5, 2024, Case #: 22-55760, Categories: fraud, securities
Per curiam, the appellate division finds that the lower court properly granted Viacom's motion to dismiss a securities class action, but denied the underwriters' motion to dismiss the same claims. A reasonable investor could find it relevant that the underwriters planned to sell their own holdings of Viacom, while Viacom was offering $3 billion of equities. Investors have adequately alleged that the underwriters did not implement any information barrier between their underwriting and brokerage departments that would have prevented the improper trading on insider information. Affirmed.
Court: New York Appellate Divisions, Judge: Per curiam, Filed On: April 4, 2024, Case #: 01866, Categories: fraud, securities, Class Action
J. Christiansen Forster finds that the district court properly adjusted the $100 monthly restitution payments defendant was making toward a $50,000 total. The new $1,100 monthly payments, which were based on an updated financial declaration, changed only the payment schedule, not the underlying restitution order or the original sentence, so statute, double jeopardy or due process rights were not violated. Affirmed.
Court: Utah Court Of Appeals, Judge: Christiansen Forster, Filed On: April 4, 2024, Case #: 20230253-CA, Categories: fraud, Restitution, securities
J. Gordon grants, in part, the lenders' motion to dismiss a borrower and guarantor's counterclaims. The lenders originally filed suit alleging they fraudulently transferred stocks as repayment. The guarantor contends he first learned of the stock transfers after a previous judgment was entered, but the lenders point to publicly available financial documents that disclosed the stock transfers before the original complaint was filed. Certain counterclaims are precluded, while a conspiracy claim must be dismissed because it is not supported by allegations for damages.
Court: USDC Nevada, Judge: Gordon , Filed On: April 2, 2024, Case #: 2:22cv1206, NOS: Other Fraud - Torts - Personal Property, Categories: fraud, securities, Banking / Lending
J. Subramanian partially denies the company's motion to dismiss a securities fraud action alleging it falsely portrayed its business as having a unique, asset-light, consignment model when it really operated like any other used-car dealership. The investors lack statutory standing for the pre-merger statements, but adequately plead scienter for executives' financial projections on an earnings call and statements regarding its reliance on one main sourcing partner.
Court: USDC Southern District of New York, Judge: Subramanian, Filed On: March 29, 2024, Case #: 1:21cv5906, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Class Action
J. Hanen grants summary judgment to the securities and exchange commission finding the bitcoin mining investments, offered by a company whose owners comingled funds, qualified as securities. Although the investments were bogus the scheme still falls under the jurisdiction of the securities and exchange commission and the company and its owners are subject to the agency’s claims against them.
Court: USDC Southern District of Texas, Judge: Hanen, Filed On: March 29, 2024, Case #: 4:20cv1187, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Conversion
J. Hall dismisses a class action brought against Kandi, a Chinese electric-vehicle manufacturer, for securities violations. The case stems from allegations that it used fake vehicle sales to obtain $160 million from U.S. investors, allegations which the company denies. The investors fail to plead scienter.
Court: USDC Eastern District of New York, Judge: Hall, Filed On: March 29, 2024, Case #: 2:20cv6042, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Class Action
J. Menendez partially grants the medical technology company's motion to dismiss the shareholders' suit alleging that it misrepresented a product's progress toward FDA approval to investors. The shareholders have not alleged facts showing that any of the company's backward-looking statements about the product were false statements of material fact or actionable omissions. Other statements the shareholders point to are inactionable opinions, and their complaint does not include any statements by the company or its officers guaranteeing or assuring that the product would be approved by the FDA, at all or on a particular timeline.
Court: USDC Minnesota, Judge: Menendez, Filed On: March 28, 2024, Case #: 0:22cv2197, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Class Action
J. Graham grants the mall property owner's motion to dismiss, ruling the investors fail to provide a causal link between statements made by executives about potential returns on investment and a sharp drop in the company's stock price shortly before they declared bankruptcy. Although several of the projections proved to be inaccurate, there is no evidence of fraud on the part of the executives, while the impact of the Covid-19 pandemic on malls across the country led to a large amount of the losses sustained before the company filed for bankruptcy.
Court: USDC Southern District of Ohio, Judge: Graham, Filed On: March 27, 2024, Case #: 2:21cv2757, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Covid-19
J. Schofield denies the company's motion to dismiss a securities fraud suit alleging it made material omissions in statements about an acquisition. The statements allegedly created the impression the acquisition would be approved by the government without requiring renegotiation of the merger. The company repeatedly and specifically stated the expected merger timetable, which was misleading if corporate executives, behind the scenes, knew otherwise.
Court: USDC Southern District of New York, Judge: Schofield, Filed On: March 27, 2024, Case #: 1:22cv4838, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Class Action
J. Burroughs denies a software company and two of its executives’ motion to dismiss a class action brought against them by a retirement trust for allegedly making false and misleading statements about demand for, and sales of, the company’s software. While forward-looking comments are not actionable, false statements made about the present are.
Court: USDC Massachusetts, Judge: Burroughs, Filed On: March 25, 2024, Case #: 1:22cv10321, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, securities, Class Action