38 results for 'cat:"Fraud" AND cat:"Securities" AND cat:"Class Action"'.
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
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. 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. 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
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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. 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
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. 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. 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
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 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. 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. 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
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. 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. 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