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
Two U.S. Senators Introduce Bill to Increase SEC Civil Penalty Authority
In June 2012, when Eastern District of New York Judge Frederic Block considered the SEC’s proposed settlement of its enforcement action against former Bear Stearns hedge fund managers Ralph Cioffi and Matthew Tannin, he “reluctantly” approved the deal, bemoaning the fact that he was “constrained” to accept the deal and lamenting the limited power that
NERA Releases Mid-Year 2012 Securities Litigation Report
According to NERA Economic Consulting’s mid-year 2012 report, securities class action lawsuit filings were at or above historical levels in 2012, and though average securities class action lawsuit settlements during the year’s first half approached all times highs, the pace of securities suit settlements is “slowing down markedly.” NERA’s Report, which is entitled “Recent Trends
A Closer Look at the Libor Scandal
The Libor scandal first began to unfold more than four years ago, but the with dramatic announcements in late June of the imposition of fines and penalties of over $450 million against Barclays PLC, the scandal has shifted into a higher gear and is now the leading story in financial papers around the world. At
After a Two-Month Lull, FDIC Fires off Two New Failed Bank Complaints
On July 13, 2012, after a lull of nearly two months during which the FDIC did not file any new failed bank lawsuits, the FDIC filed two new lawsuits against former directors and officers of failed banks. The FDIC also updated the number of authorized failed bank lawsuits as well.
The first of the
U.S.-Listed Chinese Companies: Bump-Up Claims Up Next?
One of the most distinctive recent securities litigation trends has been the surge of litigation involving U.S.-listed Chinese companies. As a result of the litigation threat, as well as beaten-down market valuations, many Chinese companies are now taking steps to de-list from the U.S. exchanges. However, this step could entail its own set of litigation
Director Protection: Advancement and Indemnification
One of the most important sources of director protection is corporate indemnification. But as significant as indemnification is for the protection of directors, the directors’ first line of defense, literally, is their right to advancement of their costs of defense. All too often, these two terms – advancement and indemnification – are used interchangeably, but
Big Bank Litigation: Barclays Libor Scandal Securities Suit Filed and Other Financial Institution Litigation Developments
At the PLUS D&O Symposium in New York this past March, I participated on a panel entitled, “Financial Institutions Underwriting: Is it Safe to Come Out Yet?” The implication of the panel topic was that perhaps with the passage of the credit crisis, financial institutions might not be as big of a D&O underwriting risk as
Summer Time
One of the many gifts my wife brought to our marriage was a generations-long family tradition of spending summers in Pentwater, Michigan. If I were, like a true Michigander, to hold up the back of my left hand as a map of Michigan’s mitten-shaped lower peninsula, I would point to the outside knuckle at
Follow-On Civil Litigation Emerges as LIBOR Scandal Continues to Unfold
The fallout from the alleged manipulation of LIBOR and other interbank offered rates continues to accumulate. In the wake of Barclays’ record fines, the regulatory investigation continues, and authorities reportedly have also launched criminal investigations. Along with the governmental investigatory and enforcement activity has also come civil litigation activity as well.
The latest