A federal court has denied the motion of former IndyMac CEO Matthew Perry to dismiss the action that the FDIC, as the failed bank’s receiver, had filed against him. In a December 13, 2011 order (here), Central District of California Judge Otis D. Wright II held that under California law the business judgment
Two Questions: Bank Closures Winding Down? FDIC WaMu Lawsuit Settled?
Whether the process is just winding down for the year or the process is actually winding down for good, the bank closure rate has recently fallen off dramatically. The FDIC has not taken over any banks for three weeks straight, with no bank closure at all so far during the month of December. And there
Lehman Underwriters Agree to $417 Million Securities Suit Settlement
With the addition of a $417 million settlement involving Lehman Brothers’ offering underwriters, the pending settlements in the Lehman Brothers securities class action lawsuit now total $507 million. Nate Raymond’s December 6, 2011 Am Law Litigation Daily article discussing the underwriters’ settlement can be found here. A copy of the December 2, 2011 settlement
The Tech Issue: Apropos of iPad Apps
With a relatively recent purchase of an iPad 2, I have made a quantum leap in technology utilization. The iPad is not only a brilliant piece of technology in and of itself, but it is also a platform for a host of brilliant applications. Indeed, there are so many nifty applications that using my iPad
Though Case Previously Dismissed , Wells Fargo Settles Wachovia Investor Suit for $75 Million
In an interesting twist on a long –running credit-crisis related securities suit, Wells Fargo has agreed to pay $75 million to settle the Wachovia equity investor securities class action lawsuit, even though their suit had been dismissed at the district court level and was on appeal at the time of the settlement. The parties’ November
U.S.-Listed Chinese Company Securities Suit Dismissed
Despite marked alleged differences between revenues and profits reported in China Century Dragon Media’s U.S. IPO prospectus and the equivalent figures reported in its Chinese operations’ filings in China, a federal court has granted the dismissal motion in the securities class action lawsuit filed against the U.S.-listed Chinese company.
On November 30, 2011, Central
After Rare Trial and Lengthy Appeals, Apollo Group Securities Suit Finally Settles for $145 Million
Finally ending a case first filed back in October 2004 and that involved one of the few securities lawsuits to go to trial, the parties to the long-running Apollo Group securities suit have reached an agreement to settle the case for $145 million. This resolution is interesting not only because it concludes a long- running
FDIC Motion to Intervene in IndyMac D&O Coverage Litigation Denied
In a November 30, 2011 order (here), Central District of California Judge R. Gary Klausner has denied the motion of the FDIC as receiver of the failed IndyMac Bank to intervene in a declaratory judgment action involving IndyMac’s D&O insurance. The FDIC sought to intervene because of its interest in recovering under the
A Closer Look at Judge Rakoff’s Rejection of the SEC’s Settlement with Citigroup
In a strongly worded November 28, 2011 opinion (here), Southern District of New York Judge Jed Rakoff rejected the proposed $285 million settlement of the enforcement action that the SEC brought against Citigroup Capital Markets. But while he emphatically rejected the proposed settlement, his opinion may also suggest how the SEC might salvage
Why M&A-Related Litigation is a Serious Problem
One of the most noteworthy recent trends in corporate and securities litigation has been the dramatic growth in the frequency of lawsuits relating to mergers and acquisitions activity. These lawsuits are not only becoming increasingly more common, but also increasingly more costly. The growth in this litigation activity has been so rapid that the significance