Former CFO’s Dismissal Motion Denied in Longtop Financial Securities Suit: Longtop Financial Technologies may be unique among U.S.-listed Chinese companies that have been caught up in the wave of accounting scandals and related securities litigation. Unlike many of the others, Longtop did not obtain its U.S.-listing by way of a reverse merger, but instead, in
Securities Suit Filings Continue Apace in Year’s First Half
The number of securities class action lawsuit filings came in slightly above historical averages during the first half of 2012, with filings against natural resources companies, life sciences companies, and foreign issuers leading the way. Filings related to mergers and acquisitions transactions continued to be an important factor in the number of filings, although not as significant of
IndyMac CEO Settles Long-Running Subprime-Related Securities Suit
When plaintiffs first filed their securities class action lawsuit against IndyMac Bancorp back in March 2007, the suit was one of the first of what later became a wave of subprime and credit crisis-related securities class action lawsuits. The suit itself, which has come to be known as the Tripp litigation, initially was dismissed and
Chancellor Leo Strine Addresses Stanford Directors’ College
Leading off the second day of the annual Stanford Directors’ College at Stanford Law School in Palo Alto, California was a keynote address from Delaware Chancellor Leo Strine. Strine is surprisingly outspoken and his presentation was lively and interesting.
The centerpiece of his presentation was a discussion of the lessons for directors based
Opening Day at the Stanford Directors’ College
The D&O Diary is on assignment this week at The Stanford Directors’ College at the Stanford Law School in Palo Alto, California. As always, the conference is well-attended (it is, in fact, sold out, as usual) and the agenda is full of timely topics and interesting speakers.
The conference began on Sunday evening with
The Modest Early Settlements of Securities Suits Involving U.S.-Listed Chinese Companies
Beginning in 2010 and accelerating in 2011, plaintiffs’ lawyers filed a wave of securities class action lawsuits against U.S.-listed Chinese companies, many of which obtained their U.S. listings via reverse merger. These cases have been making their way through the courts, and some have now reached the settlement stage. The settlements seem to share more in
Guest Post: Holding Bankers Liable?
In a recent post on this blog (here), I commented on a May 29, 2012 Dealbook blog post entitled “Why S.E.C. Settlements Should Hold Senior Executives Liable” (here), which had been written by two University of Minnesota law professors, Claire Hill and Richard Painter. After my post appeared, I contacted
Supreme Court Grants Cert in Amgen Securities Suit
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