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: securities class action litigation

Arguments to Keep the Fraud on Market Theory, and Thinking About a World Without It

Posted in Securities Litigation
As the March 5, 2014 date for oral argument before the United States Supreme Court in the closely-watched Halliburton case approaches, the briefing process in the case has continued to unfold. On January 29, 2014, the Erica P. John Fund, the respondent (the plaintiff in the underlying action) filed its merits brief in the case, … Continue Reading

Cornerstone Research: Securities Suit Filings Increase in 2013, Filing Rate Above Historical Averages

Posted in Securities Litigation
Considered on an absolute basis, securities class action lawsuit filings were up about nine percent in 2013 compared to 2012, although the number of 2013 lawsuits was about 13 percent below annual filings averages for the years 1996-2012, according to a new report from Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse. … Continue Reading

Securities Lawsuit Filings Up Slightly in 2013

Posted in Securities Litigation
The number of securities class action lawsuit filings was up slightly in 2013 compared to 2012, although the 2013 filings remained well below historical averages. While securities litigation picked up in 2013 compared to the year before, the more interesting question going forward is what the impact of the Halliburton case now pending before the … Continue Reading

Cornerstone Research Releases Securities Suit Opt-Outs Study

Posted in Opt-Outs
On November 19, 2013, Cornerstone Research, in conjunction with the Latham & Watkins law firm, released a report analyzing securities suit opt-out cases. The report, entitled “Opt-Out Cases in Securities Class Action Settlements,” and which can be found here, takes a comprehensive look at cases in which individual class members have opted out of the … Continue Reading

Guest Post: Second Circuit Holds that American Pipe Tolling Does Not Apply to the Securities Act’s Statute of Repose

Posted in Securities Litigation
An important recurring issue is the questions whether the prior filing of a securities class action lawsuit tolls the applicable statute of repose under the federal securities laws. In an important June 27, 2013, the Second Circuit issued an important decision on this question, holding that the tolling doctrine does not apply to three-year statue … Continue Reading

Guest Post: Some Data on the Outcomes of Securities Class Actions and SEC Enforcement Actions

Posted in Securities Litigation
In recent years, Stanford Law School Professor Michael Klausner has led research on several critical issues involved with class action securiteis litigation and SEC enforcement actions.In the guest post below, Professor Klausner and his colleague Jason Hegland describe the two databases they have built in support of their research efforts and detail some additional findings … Continue Reading

Advisen Reports on First Quarter 2013 Corporate and Securities Litigation

Posted in Securities Litigation
During the first quarter of 2013, new corporate and securities lawsuits and regulatory enforcement actions increased slightly compared to the fourth quarter of 2012 but remained well below annual averages over the last two years, according to a new report from Advisen, the insurance information firm. The April 2013 report, which can be found here, … Continue Reading

Countywide MBS Securities Suit Settles for $500 Million

Posted in Subprime Litigation
In what is the largest settlement so far of an mortgage-backed securities class action lawsuit filed as part of the subprime and credit-crisis securities litigation wave, the parties to the consolidated Countrywide mortgage-backed securities suit pending in the Central District of California have agreed to settle the litigation for $500 million. The settlement is subject … Continue Reading

Update: Life Sciences Companies and Securities Litigation

Posted in Securities Litigation
The number of securities class action lawsuits filed against life sciences companies rose in both absolute and relative terms in 2012, according to a March 20, 2013 memorandum by David Kotler of theDechert law form entitled “Survey of Securities Fraud Class Actions Brought Against U.S. Life Sciences Companies.”   According to the report, a copy of … Continue Reading

Cornerstone Research Releases 2012 Securities Suit Settlement Report

Posted in Securities Litigation
Though the number of securities class action lawsuit settlement approvals reached a 14-year low in 2012, aggregate and average settlement amounts increased compared to 2011, according to the annual securities suit settlement report of Cornerstone Research. The report, which is entitled “Securities Class Action Settlements: 2012 Review and Analysis,” can be found here. Cornerstone Research’s … Continue Reading

Will Cybersecurity Issues Drive the Next Big Securities Litigation Wave?

Posted in Cyber Liability, Securities Litigation
I am sure many readers were disturbed as I was by the February 19, 2013 New York Times article reporting that a Chinese army unit apparently has been executing a concentrated cyber-hacking program targeting U.S. companies and critical U.S. infrastructure. (The report of consulting firm Mandiant that was the basis of the Times article can be … Continue Reading

Following Criminal and SEC Actions, Shareholder Files Securities Suit Against Failed Bank Holding Company Directors and Officers

Posted in Failed Banks
A shareholder of the holding company for a failed Virginia bank, the Bank of the Commonwealth, has filed a securities class action lawsuit in the Eastern District of Virginia against the holding company and certain of the company’s directors and officers. The lawsuit, filed on January 22, 2013, follows after the July 2012 indictment of … Continue Reading

Dismissal Granted in Significant Life Sciences Securities Suit Ruling

Posted in Securities Litigation
On January 10, 2013, in a detailed and interesting opinion with features that may be helpful to other life sciences securities suit defendants, Middle District of Tennessee Judge Kevin Sharp granted the motion of Biomimetic Therapeutics to dismiss the securities class action lawsuit that had been filed against the company over its disclosures concerning developments … Continue Reading

Fourth Quarter Slowdown Drives Decline in 2012 Securities Class Action Filings

Posted in Securities Litigation
Largely as a result of a slowdown in new filings during the fourth quarter, 2012 securities class action lawsuit filings were below the filing levels of recent years and below historical averages. Filing levels remained elevated in the natural resources, life sciences and computer services industries, and filings against non-U.S. companies, though off from 2011 … Continue Reading

NERA: Securities Suit Filings Stable, But Settlements and Dismissals Are Down

Posted in Securities Litigation
New securities class action lawsuit filing levels were comparable to historical norms during 2012, but the number of settlements and of dismissals were both down for the year, according to the analysis and projections of NERA Economic Consulting in their December 11, 2012 publication “Flash Update: 2012 Trends in Securities Class Actions” (here).   According … Continue Reading

Securities Class Action Opt-Outs: Back with a Vengeance?

Posted in Opt-Outs
One of the more interesting story lines in the securities class action litigation arena in recent years has been the emergence of substantial class action opt-out litigation, whereby various claimants representing significant shareholder ownership interests select out of the class suit and separately pursue their own claims – and settlements. The class action opt-out litigation … Continue Reading

Cornerstone Research Releases Mid-Year 2012 Securities Litigation Report

Posted in Securities Litigation
On July 25, 2012, Cornerstone Research in conjunction with the Stanford Law School Securities Class Action Clearinghouse release it report entitled “Securities Class Action Filings: 2012 Mid-Year Assessment” (here). By contrast to other mid-year securities litigation reports, the Cornerstone Research study reports that securities class action litigation filings decreased by 6 percent in the first … Continue Reading

An Updated Analysis of Subprime Securities Suit Dismissal Motions

Posted in Subprime Litigation
While many courts are showing a greater willingness to grant motions to dismiss in subprime-related securities class action lawsuits, some cases are surviving dismissal motions and others are settling for hundreds of millions of dollars, as a result of which the "watchword is uncertainty until a more consistent and predictable pattern emerges," according to a … 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