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
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
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
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
Post-Holiday Quick Hits
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