23 results for 'cat:"Civil Procedure" AND cat:"Securities"'.
J. Perez finds that the district court improperly dismissed claims seeking to recover losses from the purchase of residential mortgage-backed securities related to 56 trusts administered by two U.S. banks. The investor was contractually barred from bringing claims against trusts with "no action clauses" without complying with pre-suit obligations, but this requirement must be weighed when parties with likely conflicts of interest are involved. On remand, a closer look must be made into whether pre-suit demands would be futile.
Court: 2nd Circuit, Judge: Perez, Filed On: April 30, 2024, Case #: 22-854, Categories: civil Procedure, securities, Contract
J. Milazzo denies a request by a representative for a Louisiana investment firm, seeking to strike certain allegations from an Securities and Exchange Commission complaint against him and his employer that he says would prejudice the jury against him in a trial for a "cherry-picking" scheme. The SEC complaint includes allegations his previous employer fired him for inappropriate behavior that did not involve securities and that his current employer knew his ex-wife had accused him of misappropriating $450,000 from his sons’ trust accounts. The adviser can prevent prejudice by a pre-trial request to redact the allegations from the complaint “if and when it is shown to the jury.”
Court: USDC Eastern District of Louisiana , Judge: Milazzo, Filed On: March 21, 2024, Case #: 2:23cv5650 , NOS: Securities/Commodities/Exchange - Other Suits, Categories: civil Procedure, Jury, securities
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
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[Consolidated.] J. Immergut appoints Dr. Lawrence Lo as lead plaintiff in the investors' class action that the nuclear power company and its current and former executives falsely claimed that they could fulfill large contracts with Utah Associated Municipal Power Systems and Standard Power. Dr. Kevin Liang Li opposes Dr. Lo as lead plaintiff, but Dr. Lo's claims are "reasonably co-extensive with other class members'," and the 9th Circuit does not support Dr. Li's assertion to disqualify Dr. Lo because he did not retain his shares through every corrective disclosure.
Court: USDC Oregon, Judge: Immergut, Filed On: February 22, 2024, Case #: 3:23cv1689, NOS: Securities/Commodities/Exchange - Other Suits, Categories: civil Procedure, securities, Class Action
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. Bennett grants Under Armour’s motion to dismiss allegations of misrepresentations to the company’s shareholders about its performance and consequent loss in sales. The shareholders collectively filed putative actions for alleged violations of securities laws because the company and its executives hid the company’s losses from shareholders. However, these actions are pending, so the company’s dismissal is granted until the actions are resolved. Also, the court does not have subject matter jurisdiction until those actions are resolved.
Court: USDC Maryland, Judge: Bennett, Filed On: September 27, 2023, Case #: 1:20cv3390, NOS: Stockholders’ Suits - Contract, Categories: civil Procedure, securities, Jurisdiction
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
Master David grants a shareholder access to company books and records so he can value his shares and exit his investment through a sale. All arguments were abandoned at trial save for the purported cancellation of shares for failure to pay a "subscription receivable," which fails due to non-compliance with statutory procedures and failure to document the debt.
Court: Delaware Chancery Court, Judge: David, Filed On: July 27, 2023, Case #: 2023-0241-BWD, Categories: civil Procedure, securities, Discovery
J. Tipton consolidates two class securities actions against Southwest Airlines and appoints a lead plaintiff. Of the four individuals who pursued the role, the chosen individual is the most adequate for lead plaintiff, as he has a large financial interest in the case, and satisfies the typicality and adequacy requirements.
Court: USDC Southern District of Texas, Judge: Tipton, Filed On: July 15, 2023, Case #: 4:23cv115, NOS: Securities/Commodities/Exchange - Other Suits, Categories: civil Procedure, securities, Class Action
J. Hartz finds that the lower improperly issued a judgment in favor of a poultry company in a class securities dispute that alleged the company made a series of misleading statements to investors regarding its business operations and other financial results data. The lower court dismissed the second amended complaint but did not first properly address its sufficiency and improperly found it was barred by the statute of repose. The matter is remanded for further proceedings on the sufficiency of the amended complaint. Reversed.
Court: 10th Circuit, Judge: Hartz, Filed On: July 13, 2023, Case #: 21-1445, Categories: civil Procedure, securities, Class Action
J. Horan denies, in part, a software company's motion to strike an individual's errata sheets in a securities case. Certain aspects of the errata sheets comply with applicable rules and, therefore, will not be precluded from being used for summary judgment or other purposes.
Court: USDC Northern District of Texas , Judge: Horan, Filed On: May 24, 2023, Case #: 3:21cv2025, NOS: Stockholders’ Suits - Contract, Categories: civil Procedure, securities