A June 5, 2008 proposal by the Financial Accounting Standards Board that could require public companies to disclosure more about their litigation risks is generating a storm of controversy. As discussed in Zusha Elinson’s June 24, 2008 Law.com article entitled "GC’s Bristle at Proposed Disclosure Rules" (here), under the proposed revision to FASB Statement
Bad Economic Vibe Means More Securities Litigation?
In flush times, the balm from the boom economy covers a multitude of sins. But when the economy sours, even transactions that once appeared favorable can turn bad. When they do, lawsuits can, and usually do, arise. Two recently filed securities class action lawsuits illustrate this point and also suggest that adverse economic circumstances may
Section 11 Lawsuits: Coming Soon to a State Court Near You?
Over the last several years, Congress has made several different efforts to concentrate class action litigation in federal court.
For example, in the Securities Litigation Uniform Standards Act of 1998 (SLUSA), Congress amended portions of the Securities Act of 1933 and the Securities Exchange Act of 1934 to preempt class actions alleging fraud under
Headline News: Settlements, Lawsuits, Dismissals
About the UnitedHealth Group Class Action Settlement: UnitedHealth Group announced on July 2, 2008 (here) that it reached an agreement to settle its high profile options backdating-related securities class action lawsuit for $895 million. A July 3, 2008 Law.com article discussing the settlement can be found here.
Not only is this
Mid-Year 2008: Securities Lawsuit Filings Remain Up
Securities lawsuit filings remained elevated during the first half of 2008. The 105 new securities lawsuit filings during the first six months of 2008 were more than 50% higher than the number of new securities lawsuit filings (69) in the first six months of 2007. (Please refer to the note below regarding my lawsuit filing “count”, which may
About Those Bear Stearns Fund Manager Indictments
Eastern cultures ascribe events to destiny, fate, or “karma.” But in our culture we demand to know who is to blame. The Zeitgeist of America’s blame culture apparently has decreed that Ralph Cioffi and Matthew Tannin, the former Bear Stearns fund managers, are to be the first level scapegoats for the subprime crisis.
Watch Out World, Incoming U.S. Securities Litigation
Lots has been written, even on The D&O Diary (most recently here), about the way the world is adjusting to investors’ growing desire to hold management accountable. At the same time, U.S. courts have proven increasingly reluctant to project the remedies available under its securities laws into situations where there is an insufficient connection
Another Subprime Securities Lawsuit Dismissal
Earlier this week when I posted my list of subprime lawsuits dismissal motion grants and denials (here), I was hoping the publication would encourage readers to let me know about case dispositions of which I was previously unaware. My strategy worked, because a loyal reader who prefers anonymity responded to my post by
Life Sciences Companies and Securities Litigation
In prior posts (most recently here), I have discussed the fact that life sciences companies remain a favored target of the plaintiffs’ securities bar. A June 2008 memorandum by Michael Kichline and David Kotler of the Dechert law firm entitled “Dechert Survey of Securities Fraud Class Actions Brought Against Life Sciences Companies” (here
Another Court Restricts Foreign Claimants’ Access
In prior posts (refer here), I have discussed the increasing reluctance of U.S. courts to exercise subject matter jurisdiction over securities claims against foreign-domiciled companies brought by foreign claimants who bought their shares on foreign exchanges (so-called “f-cubed” claimants).
In the most recent example of this, Judge Thomas Griesa of the