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Supreme Court Grants Cert To Determine If Plaintiff Must Prove Materiality Before Certifying Class in Securities Fraud Class Action

On Monday, June 11, 2012, the Supreme Court granted a Writ of Certiorari in Amgen, Inc. v. Connecticut Retirement Plans and Trust Funds, No. 11-1085 (U.S. Jun. 11, 2012) to decide whether, in a misrepresentation case under SEC Rule l0b-5, the court must require proof of materiality before certifying a plaintiff class based on the … Continue Reading

Class Action Complaint is Filed in California Based in Facebook IPO

On Tuesday, May 22, 2012, the law firm of Glancy Binkow & Goldberg LLP filed a class action complaint against Facebook, Mark Zuckerberg, nine other individuals defendants (Facebook directors and officers) and sixteen underwriters, alleging that Registration Statement for the Facebook IPO was inaccurate and misleading. The Complaint was filed in Superior Court in San … Continue Reading

Judge in Lehman Class Action Orders Officer Defendants to Provide (In Camera) Information Regarding Their Net Worth As Part of Settlement Process UPDATED: May 24 Ruling

When asked to approve a $90 million settlement (which was to be paid by insurance coverage) between class action plaintiffs and the directors and officers in the In re: Lehman Bros. Sec. and ERISA Litig., Judge Lewis Kaplan issued a May 3, 2012 Memorandum and Order directing certain defendants (five officers), who had already allowed … Continue Reading

Second Circuit Considers The Morrison Extraterritoriality Issue, Upholds Dismissal of Complaint, But Grants Plaintiffs Leave To Replead

On Thursday, March 1, 2012, the Second Circuit Court of Appeals affirmed in part and reversed in part a District Court decision dismissing a complaint for securities fraud filed by nine Cayman Islands hedge funds against entities and individuals involved in an alleged pump-and-dump scheme. Absolute Activist Value Master Fund Limited v. Ficeto, Docket No. … Continue Reading

Federal Judge in Oregon Upholds Dismissal of “Say-on-Pay” Lawsuit Against Umpqua Board

In an Opinion and Order dated February 23, 2012, Judge Michael Mosman adopted the January 11, 2012 Findings and Recommendations of Magistrate Judge John Acosta to dismiss the derivative lawsuit against the Board of Directors of Umpqua Holdings Corporation ("Umpqua") for breach of fiduciary duty. Magistrate Judge Acosta recommendation to dismiss the say-on-pay" lawsuit was … Continue Reading

Settlement in Chesapeake Energy Derivative Action: CEO Keeps $75 Million Bonus, But Agrees to Buys Back $12 Million Art Collection

On Wednesday November 2, 2011, several media outlets reported on the details of the settlement in the shareholders derivative action filed against executives of Chesapeake Energy Corporation. The case, which was filed in state court in Oklahoma in April 2009, was on appeal after the claims were dismissed in February 2010. Under the terms of … Continue Reading

Ohio Federal Judge Allows Say-on-Pay Lawsuit to Proceed

In a September 20, 2011 Opinion, Judge Timothy Black of the Southern District of Ohio ruled that a lawsuit brought against senior executives and directors of Cincinnati Bell, Inc. alleging a breach of fiduciary duty regarding compensation would be allowed to proceed. The lawsuit focuses on the "say-on-pay" provisions of the Dodd-Frank Act: specifically, attacking … Continue Reading

Wall Street Journal: Judges in Delaware Taking a Hard Look At Fee Awards in M & A Derivative Cases

On Tuesday, July 19, 2011, the Wall Street Journal ran an interesting article by Gina Chon entitled "Judges Making Lawyers Earn It," discussing trends in fee awards in lawsuits challenging mergers and acquisitions in the Delaware Court of Chancery, finding that: In recent months … the court’s judges have been more discerning, according to plaintiffs … Continue Reading

Supreme Court Holds That Mutual Fund Investment Adviser Is Not Liable For Statements By the Mutual Fund In The Fund’s Prospectus

Today, the Supreme Court ruled that a mutual fund investment adviser cannot be held liable for the statements in a prospectus made by the adviser’s client (the mutual fund itself). Janus Capital Group, Inc. v. First Derivative Traders, No. 09-525, slip op. (Jun. 13, 2011). In doing so, the Court rejected the argument of the … Continue Reading

Supreme Court Holds That Securities Fraud Plaintiffs Do Not Need to Prove Loss Causation In Order to Obtain Class Certification

In order to prevail in a private securities fraud action, a plaintiff must demonstrate that defendants’ deceptive conduct caused his or her economic loss – a concept known as "loss causation." Today, the Supreme Court unanimously ruled that class action plaintiffs do not need to prove loss causation in order to obtain class certification. Erica … Continue Reading

Shareholders’ Derivative Complaint Filed Against Johnson & Johnson For FCPA Violations

On May 2, 2011, a derivative complaint was filed against eleven members of the Board of Directors of Johnson & Johnson alleging breach of fiduciary duty, mismanagement and violations of the federal securities laws based on the company’s recent settlements with the Department of Justice and the Securities Exchange Commission regarding violations of the Foreign … Continue Reading

New Study Shows Number of Securities Class Action Settlements Decreased in 2010, While The Median Settlement Amount Increased

On March 10, 2011, Cornerstone Research announced the results of its latest study: "Securities Class Action Settlements – 2010 Review and Analysis." The Annual Report, which provides detail on settlement summary statistics and an analysis of case characteristics, reviewed the 86 court-approved settlements in 2010, finding that the number of settlements fell to its lowest in … Continue Reading