District Court Stays Securities Class Action Involving Initial Coin Offering Pending Supreme Court Review

On February 1, 2018, a federal district court in the Northern District of California stayed a putative class action involving the Tezos Initial Coin Offering (“ICO”) pending the United States Supreme Court’s decision in a case addressing state court jurisdiction over securities class actions.  In granting the defendant’s request for a stay, the court refrained from deciding the novel securities and jurisdictional issue of whether ICOs are securities offerings subject to the Securities Act of 1933. Continue reading “District Court Stays Securities Class Action Involving Initial Coin Offering Pending Supreme Court Review”

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”