Plaintiffs’ Securities Claims Denied Class Treatment for Failure to Satisfy Predominance Requirement

On May 15, 2017, the United States District Court for the Southern District of New York denied class treatment to a proposed class action alleging violations of Section 10(b) of the Securities Exchange Act of 1934.  In its opinion, the district court held that the plaintiffs failed to satisfy Rule 23(b)(3)’s predominance requirement because their “omission” claims were actually alleged misrepresentations not subject to a presumption of class-wide reliance. Continue reading “Plaintiffs’ Securities Claims Denied Class Treatment for Failure to Satisfy Predominance Requirement”

Ninth Circuit Holds That Securities Class Action Based on Violations of Ethics Code Properly Dismissed

On January 19, 2017, the Ninth Circuit affirmed the dismissal of a shareholder class action lawsuit alleging securities fraud violations, arising out of Hewlett-Packard’s former CEO’s alleged misrepresentations about HP’s ethical compliance.  In a case of first impression, the Ninth Circuit held that there was no actionable securities fraud claim where a CEO violates the corporation’s corporate code of ethics, even after publicly touting the corporation’s high standards for ethics and compliance. Continue reading “Ninth Circuit Holds That Securities Class Action Based on Violations of Ethics Code Properly Dismissed”