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
What’s Happening Now? Litigation Funding, Apparently
Third-Party litigation funding’s moment may have already be here, as I have previously noted. But just the same, it is a little surprising to find stories about litigation funding at virtually every turn, with stories over the weekend appearing, for example, in The Economist and in the Wall Street Journal, among other publications.
Guest Post: As Proxy Season Begins, the Dodd-Frank Say-on-Pay Cases Are on the Brink of Death
As I have previously noted on this blog (most recently here), plaintiffs’ lawyers recently have evolved a new approach to litigation relating to the advisory “say on pay” vote required under the Dodd-Frank Act. Under this most recent version of the say on pay litigation, the plaintiffs’ lawyers seek to enjoin upcoming shareholder votes
RBS Investors, Closed Out of U.S. Courts, Pursue Claims in the U.K.
As a result of the U.S. Supreme Court decision in Morrison v. National Australia Bank, investors who purchased their shares in a company’s stock on a non-U.S. exchange are unable to pursue securities claims against the company or its management in U.S. courts. I have long thought these investors’ preclusion from U.S. courts would
The JOBS Act After One Year
A year ago, President Obama signed the Jumpstart Our Business Startups (JOBS) Act, a legislative product of rare bipartisan collaboration that was intended to improve employment and make it easier for smaller firms to raise private equity. (For an overview of the Act’s provisions, refer here.) Twelve months later, many of the rules needed
Guest Post: A New Playbook: Part 2 – Global Securities Enforcement Activity Stepping Up to Meet New Market Challenges
As a result of changes in the regulatory environment, the securities litigation landscape is changing around the world. In an earlier post (here), Robert F. Carangelo, Paul Ferrillo and Catherine Y. Nowak of the Weil Gotshal & Manges law firm surveyed the regulatory changes and the implications for securities litigation throughout the
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
Mutual Fund Directors in the Hot Seat?
Mutual fund directors have been attacked before. For example, in his 2002 letter to shareholders of Berkshire Hathaway, Berkshire chairman Warren Buffett took a detour in an essay about corporate governance to express concerns about mutual fund directors. He noted that mutual fund directors effectively have only two “important duties”; to pick the fund manager
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
Update: Life Sciences Companies and Securities Litigation
The number of securities class action lawsuits filed against life sciences companies rose in both absolute and relative terms in 2012, according to a March 20, 2013 memorandum by David Kotler of theDechert law form entitled “Survey of Securities Fraud Class Actions Brought Against U.S. Life Sciences Companies.” According to the report, a copy