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The D & O Diary
Directors and officers liability and insurance. Kevin LaCroix on securities laws, corporate fraud, D & O litigation.
481 articles
A Status Update on the Subprime and Credit Crisis-Related Litigation
From The D & O Diary, 4 month ago, Read 0 times. Similar articles
Back in February 2007, when investors in New Century Financial Corporation filed a securities class action lawsuit against the company and certain of its directors and officers, there was little reason to suspect at the time that problems at the company represented the leading edge of a looming financial crisis or that the case itself was the first lawsuit in what ultimately grew to become a mountain of subprime and credit crisis-related litigation. But even now, five years later, the...
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Interesting Times: A 2011 Year-End FCPA Update
From The D & O Diary, 4 month ago, Read 0 times. Similar articles
As a result of developments during 2011, there is a “growing sense of urgency amongst FCPA practitioners as to the direction the statute will take in the coming years,” according to a law firm’s year-end FCPA report. The January 3, 2011 memo from the Gibson Dunn law firm, entitled “2011 Year-End Update,” can be found here. Whatever else might be said, according to the report, “these are interesting times for the FCPA.”
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According to the report,...
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The Latest FDIC Failed Bank Lawsuit
From The D & O Diary, 4 month ago, Read 0 times. Similar articles
On December 29, 2011, in what appears to have been the final year-end step as the FDIC ramped up its failed bank litigation activity during 2011, the FDIC filed a civil lawsuit in the Western District of North Carolina in is capacity as receiver of The Bank of Ashville, of Ashville, North Carolina, against seven former directors and officers of the bank.?Though this lawsuit is only the latest in a series of failed bank actions the agency has filed, there are some interesting aspects to the...
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New Year's Filings Pick Up Where Last Year's Left Off with New Lawsuit Against U.S.-Listed Chinese Company
From The D & O Diary, 4 month ago, Read 1 times. Similar articles
Securities class action lawsuit filing activity seems to have picked right up in the New Year where last year’s filings left off, as what appears to be the first filed case of 2012 involves a U.S.-listed Chinese company. Camelot Information Systems, a Chinese-based company whose American Depositary Shares (ADS) trade on the NYSE, and certain of its directors and officers have been sued in a securities class action lawsuit dated January 5, 2012. A copy of the plaintiff’s complaint...
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The Top Ten D&O Stories of 2011
From The D & O Diary, 4 month ago, Read 0 times. Similar articles
The year just ended was eventful in many ways. Earthquakes, hurricanes, tornadoes, floods, blizzards and droughts were scattered across the globe, and political unrest shook many countries. In a year filled with such significant developments, events in the world of D&O liability pale by comparison. But even if there were no earth-shaking events, 2011 was nevertheless an eventful year in the directors and officers’ liability arena. Here is my selection of the top ten stories from the...
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A Closer Look at 2011 Securities Lawsuit Filings
From The D & O Diary, 4 month ago, Read 0 times. Similar articles
Surging levels of M&A-related litigation and a wave of lawsuits involving U.S.-listed Chinese companies drove federal securities class action lawsuit filings during 2011 to the highest levels since 2008. However, due to the growing wave of M&A-related litigation, much of which is filed in the state courts, the federal securities lawsuit filing statistics, while interesting, represent only a part of the overall corporate and securities litigation story. State court litigation,...
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M&A-Related Litigation Has Replaced Stock Drop Suits as Plaintiffs' Securities Lawyers' Lawsuit of Choice
From The D & O Diary, 5 month ago, Read 0 times. Similar articles
In a prior post (here), I examined the mounting problems associated with the increasing levels of M&A-related litigation. A recent academic paper takes a closer look at these issues and concluded, among other things, that M&A-related lawsuit filings now outnumber federal securities class action lawsuit filings, and M&A-related litigation has “replaced traditional stock drop cases as the lawsuit of choice for plaintiffs’ securities lawyers.”
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In her article...
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Canada's Highest Court Rules Proposed Federal Securities Regulator Unconstitutional
From The D & O Diary, 5 month ago, Read 0 times. Similar articles
A legislative proposal to create a single federal Canadian securities regulator is unconstitutional, the country’s highest court has ruled. In a December 22, 2011 opinion (here), the Supreme Court of Canada ruled unanimously in an advisory opinion that the Act to create a single, unified securities regulator “as presently drafted” is not a valid exercise of the federal power to regulate trade and commerce. However, the Court expressly left the door open to a unified approach...
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E*Trade Settles Subprime Securities Suit for $79 Million
From The D & O Diary, 5 month ago, Read 0 times. Similar articles
E*Trade Financial Corporation has reached an agreement in principle to settle the subprime-related securities class action lawsuit pending against the company and certain of its directors and officers, the company reported in its December 21, 2011 filing on Form 8-K. The agreement calls for the company and its D&O insurance carriers to pay a total of $79 million, of which the company’s portion is approximately $10.75 million. The agreement is subject to court approval.
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As...
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NY Court of Appeals Rejects Martin Act Preemption of Common Law Securities Claims
From The D & O Diary, 5 month ago, Read 0 times. Similar articles
A long-standing question under New York law is whether the state’s Martin Act preempts private claimants’ efforts to bring non-fraud common law claims in the securities context. A well-developed body of case law has generally held that it does, although recently some judges questioned this conclusion.
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In a December 20, 2011 opinion (here), the New York’s highest court held that the Martin Act does not preclude private claimants from bringing common law causes of action....
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