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Securities – Fraud – Scienter
Where plaintiffs have moved for leave to file a proposed second amended complaint, that motion should be allowed in part, as the plaintiffs present allegations that provide a strong inference of scienter only as to statements identified as Nos. 7, 13(a), 13(b) and 14(a).
Penny stock trader liable for selling unregistered securities
A Connecticut attorney who churned the issuance of $2,000 in penny stocks in a new business that operated an unprofitable yoga studio into nearly $700,000 in profit two years later could be liable for selling unregistered securities in violation of federal law, the 1st U.S. Circuit Court of Appeals has determined.
Securities – Unregistered sales
Where the Securities and Exchange Commission brought a civil enforcement action, the lower court did not err by awarding the SEC partial summary judgment but did err in imposing equitable remedies and in concluding that it lacked the power to issue a civil penalty.
Securities – Fraud – Merger
Where a securities fraud complaint has been filed, the complaint should be dismissed with prejudice based on insufficient allegations of falsity and scienter.
Securities – Fraud
Where the Securities and Exchange Commission has brought several claims of securities fraud, the SEC has not met its burden of proving by a preponderance of the evidence that two defendants violated Section 17(a)(1) of the Securities Act or Section 10(b) of the Exchange Act.
Securities – Scienter – Confidential witnesses
Where (1) a securities fraud complaint was dismissed with prejudice, (2) the dismissal was affirmed on appeal, and (3) the lead plaintiff has filed a motion to vacate, claiming that newly discovered evidence cures the deficiencies that warranted dismissal, the motion was untimely and lacks merit, so it must be denied.
Securities – Interlocutory appeal
Where (1) a defendant’s motion to dismiss federal claims was denied, (2) the defendant’s motion for leave to seek an interlocutory appeal was allowed, and (3) the plaintiff has moved to amend its complaint, the plaintiff’s motion to amend should be denied without prejudice, as allowing that motion would delay the defendant’s pursuit of an interlocutory appeal and thus would not serve the i[...]
Securities – Offeror status – MUSA
Where a complaint has been filed including a count alleging a violation of the Massachusetts Uniform Securities Act, that count must be dismissed because the allegations only establish that the defendants may have caused a sale of securities by a third party, so they cannot be liable as offerors, nor can the defendants be liable as agents who materially aided in the sale of securities.
Securities – Fraud – ‘Scheme liability’ claim
Where a securities fraud complaint was dismissed, that decision should be affirmed because the lower court correctly determined that the complaint failed to plead any materially false or misleading statement or omission, while the plaintiff did not preserve a separate “scheme liability” claim.
Verdict in securities fraud case vacated over evidentiary ruling
The 1st U.S. Circuit Court of Appeals has ruled that the defendant in a securities fraud case should have been permitted to impeach the credibility of the plaintiff by cross-examining him about conduct that led a state medical board to determine that he misrepresented his credentials.
Securities – Cross-examination – Truthfulness
Where a plaintiff brought suit under the Massachusetts Uniform Securities Act, a jury verdict in favor of the plaintiff must be vacated in part, as it was an abuse of discretion for the trial court to preclude cross-examination about the facts underlying the Rhode Island medical board’s 2013 conclusion that the plaintiff had repeatedly misrepresented his medical credentials in a way that was int[...]
Securities – Class action – Appointment of lead plaintiff
Where a federal securities class action has been brought, a plaintiff claiming to have suffered a loss of $675,707.12 should be appointed as lead plaintiff.
Verdicts & Settlements
- Injury during baby’s adenoidectomy leads to stroke
- Construction worker’s hand caught in cement mixer
- Worker trapped in freezer, dies during steam cleaning
- Pedestrian, 69, hit by motor vehicle while in crosswalk
- Four-vehicle pileup leaves driver with spinal cord injury
- Nursing home staff blamed for kidney-failure death
- Pharmacy’s late delivery blamed for patient’s death
- Man, 25, drowns after swimming lesson at fitness club
Opinion Digests
- Jurisdiction – Forum selection clause – Non-signatory
- Criminal – Responsibility
- Attorneys – Lien
- Landlord and tenant – Default judgment
- Zoning – Constructive grant – Comprehensive permit
- Fraud – False Claims Act – Settlement share
- Civil practice – Discovery – Cybersecurity
