At least since Elon Musk’s infamous “take private” Tweet, we have known that communications on social media can potentially give rise to liability under the federal securities laws. Now, after a company posted an allegedly upbeat Tweet ahead of its full quarterly earnings release, and after the company’s share price rose on the Tweet but slumped on the later release of the detailed results, the company has been hit with a securities class action lawsuit based on the Tweet. A copy of the complaint filed on February 28, 2022 against Affirm Holdings can be found here.
Continue Reading Upbeat Social Media Post Draws Securities Suit
RBS Settles Harborview MBS Securities Suit for $275 Million
In a reminder that litigation from the credit crisis is still kicking around and that there are still some significant credit crisis cases that are yet to be resolved, Royal Bank of Scotland has agreed to settle the Harborview Mortgage-Backed Securities litigation for a payment of $275 million dollars. The settlement is subject to documentation
E&Y Settles Lehman Brothers Securities Suit for $99 Million
On November 27, 2013, the parties to the consolidated Lehman Brothers securities litigation filed with the court a stipulation of settlement pertaining to the securities class action lawsuit brought by Lehman investors against the bankrupt company’s former auditors, Ernst & Young. The accounting firm has agreed to settle the investors’ claims for a payment of
Is the “Fraud on the Market Theory” About to Get Dumped?
A petition for a writ of certiorari filed last month in the U.S. Supreme Court in connection with the long-running Halliburton securities class action lawsuit – which has been up to the Supreme Court once already – takes aim at one of the critical components in the securities plaintiffs’ tool kit: the “fraud on the
Countywide MBS Securities Suit Settles for $500 Million
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
Cornerstone Research: Securities Suits Involving Accounting Allegations Less Likely to Be Dismissed, Costlier to Settle
Securities class action lawsuits involving accounting allegations are less likely to be dismissed, take longer to resolve, and make up a much greater proportion of total securities suit settlement dollars than non-accounting cases, according to a new report from Cornerstone Research. The report, entitled “Accounting Class Action Filings and Settlements: 2012 Review and Analysis,” and
Credit Crisis Residue: Economic Problems and Litigation Both Grind On
As the most dramatic evens from the financial crisis recede into the past, there is an urge to consign the downturn to the pages of history, But the banking crisis in Cyprus earlier this week, along with persistent unemployment in this country and elsewhere, show that, as much as we would all like to turn
Catching Up: Citigroup Bondholders Settlement; FDIC Failed Bank Litigation Update; Freddie Mac Libor Suit: and More
Much happened in recent days while The D&O Diary was away on extended travel. Some of the developments were significant. What follows is a brief summary of the more significant events over the last few days.
Subprime-Related Citigroup Bondholders Action Settles for $730 Million: In what is the second-largest settlement of a subprime and
A Closer Look at the DoJ’s Complaint against McGraw-Hill and S&P
By now you will have heard that the U.S. Department of Justice has filed a securities class action lawsuit against S&P and its corporate parent, McGraw-Hill, about the rating agency’s ratings of collateralized debt obligations as the subprime meltdown unfolded. A copy of the DoJ’s complaint, filed on February 4, 2013 in the Central District of
Australian Court: S&P Liable for Negligent Misrepresentations in Complex Financial Instrument Triple-A Rating
Though many include the rating agencies among the list of culprits that contributed to the global financial crisis, the rating agencies have up until now largely dodged attempts to hold them liable. While there have been a small number of cases (refer for example here) where courts have denied the motions of rating agencies to