On Monday, June 11, 2012, the United States Supreme Court granted the petition of Amgen for a writ of certiorari in a securities lawsuit pending against the company. As a result, next term the Court will be addressing the question of whether securities plaintiffs must establish in their class certification petition that the alleged misrepresentation
“Extravagant” Statements, Nearly Two Dozen Confidential Witnesses – But Credit Crisis-Related Securities Suit Dismissal Still Affirmed
The plaintiffs’ complaint cited twenty-three confidential witnesses and relied on statements the appellate court itself described as “extravagant,” but the First Circuit nevertheless affirmed the lower court’s dismissal of the credit crisis-related securities class action lawsuit investors filed against Textron and certain of its directors and officers. A copy of the First Circuit’s June 7, 2012
To Encourage the Others?: Imposing Personal Liability for Corporate Fines on Individual Officers
In a ruling that has gained a great deal of attention and scrutiny, Southern District of New York Judge Jed Rakoff rejected the “neither admit nor deny” settlement in the SEC’s enforcement action against Citigroup, a ruling that is now on appeal in the Second Circuit (about which refer here). Among other things, Judge
Thinking About Morrison’s “Unintended Problems”
The U.S. Supreme Court’s blockbuster opinion in Morrison v National Australia Bank has had an enormous impact, resulting as it has in the dismissal of numerous securities suits involving non-U.S. companies that previously would have been permitted to go foward in U.S. courts. But over time it has become clear that the Supreme Court’s opinion does not
Second Circuit: Failure to Disclose “Known Uncertainties” States Securities Claim
In a May 25, 2012 decision in a long-running case that, among other things, could have important implications for the lawsuits recently filed against Facebook, the Second Circuit reversed the lower court’s dismissal of the securities suit involving Ikanos Communications, holding that the plaintiff’s proposed amended complaint “plausibly alleged that the [undisclosed] defects constituted a known
Class Certification Denied in Securities Suit Against U.S.-Listed Chinese Company
During 2010 and 2011, a number of securities class action lawsuits were filed against U.S.-listed Chinese companies. Plaintiffs’ lawyers seemed eager to pursue these cases despite likely procedural and practical challenges such as likely difficulties in obtaining discovery, as well as language and cultural barriers. And if a recent decision in one of these cases
Facebook IPO Fizzle Draws Securities Suits
Facebook’s disappointing public company debut has drawn a great deal of media scrutiny and criticism. But the finger pointing has not been contained just to the front pages of the newspapers. Disappointed investors have also now resorted to the courts, and further lawsuits seem likely to follow.
First, on May 22, 2012, an investor
Cornerstone Research Releases Study of Accounting Class Action Securities Cases
On the eve of the tenth anniversary of the enactment of The Sarbanes Oxley Act, Cornerstone Research has released a study of the filing trends and settlements of securities class action lawsuits involving accounting allegations. The May 2012 report entitled “Accounting Class Action Filings and Settlements: 2011 Review and Analysis” can be found here. A
Emerging Growth Companies: You Have Been Warned
In order to try to boost the number of companies going public, the recently enacted JOBS act provides for certain procedural and reporting advantages for “Emerging Growth Companies,” which are defined in the Act as companies within five years of their IPO and with revenues less than $1 billion. A number of companies planning IPOs
Securities Suit Filed Against JP Morgan Chase Over Massive Trading Losses
In the wake of JP Morgan Chase’s startling news last week of its $2 billion trading loss, and of the equaling startling statements of Jamie DImon, the bank’s CEO, that the losing trades were, among other things, “flawed, complex, poorly reviewed, poorly executed, and poorly monitored,” there has been speculation whether these disclosures would lead to