The D&O Diary

The D&O Diary

A PERIODIC JOURNAL CONTAINING ITEMS OF INTEREST FROM THE WORLD OF DIRECTORS & OFFICERS LIABILITY, WITH OCCASIONAL COMMENTARY

Tag Archives: scienter

Barclays Libor-Scandal Securities Suit Survives Renewed Dismissal Motion

Posted in Libor Scandal, Uncategorized
The Libor-scandal based securities suit filed against Barclays and certain of its directors and offices will now be going forward. The case was initially dismissed, but on appeal the Second Circuit vacated a part of the dismissal ruling and returned the case to the district court for further proceedings. The defendants filed a renewed motion … Continue Reading

The Sins of the Past: Ninth Circuit Revives BP’s Prudhoe Bay Oil Spill Securities Suit

Posted in Securities Litigation
In a February 8, 2014 article entitled “A Shrunken Giant” (here), the Economist magazine examined BP’s efforts to regain its footing after the disastrous April 2010 Deepwater Horizon explosion and oil spill. The article concludes by stating that “Repairing the balance sheet and books is one thing. Repairing BP’s reputation for management excellence will take … Continue Reading

Internal Control Misrepresentations Alone Held Sufficient to State a Securities Claim

Posted in Securities Litigation
Securities class action plaintiffs often allege that the defendants’ statements about their company’s internal controls are misleading. Typically, these internal control-related allegations are made in connection with allegations of accounting misrepresentations, as the plaintiffs contend that the alleged internal control deficienciesp allowed the accounting errors behind alleged accounting misrepresentations.   In a November 7, 2012 … Continue Reading

Failed Bank-Related Securities Lawsuits: A Dismissal and A Settlement

Posted in Failed Banks, Securities Litigation
One of the ways in which the current wave of bank failures is different from the failures during the S&L crisis is that this time around, by comparison to that prior period, a number of the bank closures have been accompanied by shareholder lawsuits brought  against the former directors and officers of the failed institutions. … Continue Reading

What Difference Does it Make that Paulson “Instructed” Lewis Not to Disclose the Fed Backstop of the BofA/Merrill Deal?

Posted in Securities Litigation
One of the most interesting aspects of the complicated sequence of events surrounding the Bank of America/Merrill Lynch merger is the suggestion that Treasury Secretary Henry Paulson instructed BofA’s CEO Ken Lewis not to disclose to BofA shareholders that the government, in order to keep BofA from backing out of the deal, was backstopping BofA … Continue Reading

Ninth Circuit Rejects Securities Case Based on FCPA Disclosures

Posted in Foreign Corrupt Practices Act, Securities Litigation
In a November 26, 2008 opinion (here), the Ninth Circuit affirmed the lower court’s dismissal of a lawsuit asserting securities law violations against InVision and certain of its directors and officers based on FCPA-related disclosures. The case is noteworthy not only for its involvement of FCPA-related allegations, but also for the appellate court’s consideration of … Continue Reading

Appellate Action: Life Sciences Securities Lawsuits

Posted in Securities Litigation
The heightened susceptibility of life sciences companies to securities class action lawsuits is a phenomenon that I and others have previously noted (refer here). But while life sciences companies may experience greater securities class action claim frequency, many of these lawsuits against life sciences companies are dismissed (as discussed here). In a case the First Circuit … Continue Reading