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Mealey's Securities

  • January 31, 2025

    Judge Grants Final Approval Of $22M Settlement In Block.one EOS Securities Case

    NEW YORK — A federal judge in New York granted final approval of a $22 million settlement in a class action accusing a company that promised that it would develop a software program enabling the creation of novel EOS cryptocurrency blockchain technologies of making “a host of materially false and misleading statements to induce investors to purchase EOS Securities” and failing to register its initial coin offering (ICO).

  • January 31, 2025

    Shipping Company Did Not Violate Securities Laws In Seeking Investment, Jury Finds

    DAYTON, Ohio — A jury in a federal court in Ohio found that a shipping company didn’t violate federal securities laws or  commit fraud in seeking investment from a trucking-logistics company in a consolidated case where the trucking-logistics company alleged that the shipping company used misinformation to induce its investment and the shipping company alleged that the trucking-logistics company breached their contract.

  • January 30, 2025

    $47.5M Settlement Between Battery Maker, Shareholders Granted Final Approval

    SAN FRANCISCO — A $47.5 million settlement was granted final approval by a federal judge in California, concluding a case brought by shareholders against the developer of a “solid-state” electronic vehicle battery alleging that the developer violated federal securities laws by misrepresenting the progress and effectiveness of their batteries.

  • January 29, 2025

    Final Approval Of $200M Settlement Granted In Uber IPO Misstatement Class Action

    SAN FRANCISCO — A federal judge in California issued final approval of a $200 million settlement to end a class action lawsuit bought by investors against ride sharing company Uber Technologies Inc. and certain of its executives that claimed that the company issued a series of misleading statements in the lead-up to its May 2019 initial public offering (IPO).

  • January 29, 2025

    Judge Preliminarily Approves $362.5M Settlement In Securities Action Against GE

    NEW YORK — A federal judge in New York granted preliminary approval of a $362.5 million settlement between General Electric Co. and investors who alleged that the company violated federal securities laws in relation to its representations regarding its power division’s factoring of long-term receivables.

  • January 28, 2025

    Securities Suit Involving Reinsurance Dismissed For Lack Of Scienter

    NEW YORK — Ruling that the “allegations fail to raise the required strong inference of scienter” and that further amendment would be futile, a New York federal judge dismissed a putative class action that attempted to use a reported error on the reinstatement premium for a specialty casualty reinsurance treaty — and purported statements from confidential witnesses — as the basis for securities fraud claims.

  • January 27, 2025

    Judge Allows Crypto Company’s Appeal Of Ruling On SEC Enforcement To 2nd Circuit

    NEW YORK — After issuing a split ruling on Coinbase Inc.’s motion for judgment on the pleadings last spring, a federal judge in New York granted Coinbase’s motion to certify the order for interlocutory appeal, determining that a controlling question of law exists regarding the application and reach of SEC v. W.J. Howey Co.’s three-prong securities test for crypto-asset transactions.

  • January 27, 2025

    2 Robinhood Broker-Dealers Agree To Pay $45 Million To Settle SEC Allegations

    WASHINGTON, D.C. — Broker-dealers Robinhood Securities LLC and Robinhood Financial LLC (together, Robinhood) will pay $45 million in combined penalties to settle Securities and Exchange Commission allegations that they violated more than 10 securities law provisions.

  • January 27, 2025

    SEC Appeals Opinions In 2 Cases Where Judge Vacated ‘Dealer Rule’

    FORT WORTH, Texas — The Securities and Exchange Commission filed notices of appeal of opinions issued by a federal judge in Texas that granted summary judgment in two separate cases challenging the SEC’s “Dealer Rule” where the judge found that the SEC “engaged in unlawful agency action taken in excess of its authority” and vacated the rule.

  • January 24, 2025

    Regulatory Freeze Hits ‘Adequate Consideration’ Proposed Regulation For ESOPs

    WASHINGTON, D.C. — A regulatory freeze that President Donald J. Trumpinstituted as part of his first official acts has affected a long-awaited revised proposed regulation and a proposed class exemption in an Employee Retirement Income Security Act issue that has seen significant litigation — employee stock ownership plan (ESOP) transactions.

  • January 23, 2025

    2nd Circuit Denies Rehearing To Securities Audit Firm After Issuing Amended Opinion

    NEW YORK — A Second Circuit U.S. Court of Appeals panel denied a petition for rehearing or rehearing en banc filed by the auditor of an insurance company accused by investors of overstating its earnings and refused to review its finding in an amended opinion that claims brought under the Exchange Act against the auditor can proceed because the auditor’s misstatements were in fact material.

  • January 22, 2025

    3rd Circuit: SEC Must Explain Denial Of Crypto Company’s Petition For Rulemaking

    PHILADELPHIA — The Third Circuit U.S. Court of Appeals agreed with a digital asset trading platform that the Security and Exchange Commission’s order denying the platform’s request for rulemaking was conclusory and insufficiently reasoned and remanded the petition to the SEC for a more complete explanation but denied the platform’s request to order the SEC to institute rulemaking proceedings.

  • January 17, 2025

    Investment Adviser Sues Insurers For Breach Of Contract In Delaware Court

    WILMINGTON, Del. — An investment adviser insured sued its investment management liability insurers for breach of contract in a Delaware court, seeking a declaration that the insurers have a duty to advance defense costs and indemnify it against underlying claims for unjust enrichment, breach of fiduciary duty and violations of the Securities Exchange Act of 1934.

  • January 16, 2025

    DOL Issues Long-Awaited ‘Adequate Consideration’ Proposed Regulation For ESOPs

    WASHINGTON, D.C. — The U.S. Department of Labor (DOL) on Jan. 16 released a long-awaited revised proposed regulation and a proposed class exemption on an Employee Retirement Income Security Act of 1974 issue that has seen significant litigation — employee stock ownership plan (ESOP) transactions.

  • January 15, 2025

    Judge Orders Distribution Of Funds In $15 Million Zillow Securities Settlement

    SEATTLE — A federal judge in Washington ordered the distribution of a $15 million class action settlement in a case brought by investors against online real estate marketplace provider Zillow Group Inc. alleging that the provider concealed the development of a co-marketing program that violated the Real Estate Settlement Procedures Act (RESPA) and encouraged such violations in violation of federal securities laws.

  • January 14, 2025

    High Court Denies Petition For Certiorari In Domestic Transaction Standards Case

    WASHINGTON, D.C. — The U.S. Supreme Court on Jan. 13 denied a petition for certiorari brought by an online platform where crypto assets could be purchased and sold, leaving in place a Second Circuit U.S. Circuit Court of Appeals ruling that securities claims may proceed over crypto asset purchases in light of plausible allegations that the transactions in question matched on servers located in the United States.

  • January 14, 2025

    Solicitor General Invited To Weigh In On ICA Private Right Of Action Case

    WASHINGTON, D.C. — The U.S. Supreme Court on Jan. 13 invited the solicitor general to file a brief expressing the views of the United States in a case brought by multiple closed-end funds (CEFs) asking the high court to decide whether a section of the Investment Company Act of 1940 (ICA) includes a private right of action.

  • January 09, 2025

    Federal Judge Grants Final Approval Of $15.25 Million Securities Settlement

    GREENSBORO, N.C. — A medical device and pharmaceutical company and its shareholders received final approval of a settlement by a federal judge in North Carolina, ending a case brought by the shareholders, who alleged that they sustained financial losses based on false or misleading statements about securities offered by the company.

  • January 09, 2025

    Final Approval Granted To U.S. Portion Of Fracking Securities Global Settlement

    BROOKLYN, N.Y. — A federal judge in New York granted final approval to the approximately $7 million U.S. portion of a global settlement in a case brought by investors alleging that an oil and gas exploration company violated securities laws.

  • January 08, 2025

    Biopharmaceutical Company, Insurer Stipulate To Dismiss D&O Coverage Dispute

    LOS ANGELES — After announcing that a settlement has been reached in principle, a biopharmaceutical company insured and its insurer filed a joint stipulation to dismiss a directors and officers liability coverage dispute arising from a lawsuit brought by the insured’s former employee.

  • January 07, 2025

    2nd Circuit Affirms Amount, Scope Of Asset Freeze In Securities Fraud Action

    NEW YORK — In a summary order, a Second Circuit U.S. Court of Appeals panel affirmed a district court order granting a preliminary injunction and asset freeze of $46 million against the owner of a company the Securities and Exchange Commission alleges misappropriated investor funds and hindered the commission’s investigation into the company, finding that the lower court had correctly determined the amount and scope of the asset freeze.

  • January 07, 2025

    Delaware Judge Rules On Summary Judgment Motions In D&O Coverage Dispute

    WILMINGTON, Del. — A Delaware judge held that an underlying securities class action falls under a 2018-2019 directors and officers liability insurance policy period but that an underlying consumer class action falls outside both the 2017-2018 and 2018-2019 policy periods and is not interrelated with any covered claims, ruling on various motions for summary judgment brought by a health technology business and its primary and excess insurers.

  • January 07, 2025

    Federal Magistrate Judge OKs $17.75 Million Settlement In Securities Dispute

    OAKLAND, Calif. — A federal magistrate judge in California issued an order granting final approval to a $17.75 million settlement in a case brought by investors who alleged that a company provided several misleading omissions and misrepresentations in a proxy registration statement to secure a merger with a special purpose acquisition company.

  • January 06, 2025

    Judge: Bump-Up Exclusion Does Not Bar D&O Coverage For Securities Class Action

    WILMINGTON, Del. — A Delaware judge on Jan. 3 ruled in favor of an insured in its breach of contract and declaratory judgment lawsuit seeking directors and officers coverage for an underlying securities class action, rejecting the insurers’ argument that the policy’s bump-up exclusion barred coverage.

  • January 06, 2025

    Split 9th Circuit Panel Determines Investor Not Defrauded By Undisclosed Lawsuit

    SAN FRANCISCO — A split panel of the Ninth Circuit U.S. Court of Appeals agreed with a federal district court that a cryptocurrency investor did not sufficiently allege federal and state securities fraud claims when he accused the seller of the cryptocurrency of misleading investors by not informing them of a lawsuit the seller filed against the cryptocurrency company’s parent company.