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Securities Fraud Appeals

Cooley LLP

Deciding Issue of First Impression, Fourth Circuit Holds Short-Seller Report Could Not Support Loss Causation – in Significant...

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On April 8, 2025, the US Court of Appeals for the Fourth Circuit affirmed the US District Court for the District of Maryland’s dismissal of all claims in Defeo et al. v. IonQ, Inc. et al., a securities class action asserting...more

Troutman Pepper Locke

SEC Briefs Disgorgement and Investor Harm in Navellier v. SEC

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In the recent Supreme Court case, Navellier & Associates, Inc. v. Securities and Exchange Commission (SEC), the petitioners sought a writ of certiorari challenging the decisions of the lower courts regarding the scope of...more

Hogan Lovells

Tenth Circuit affirms dismissal of short seller’s claims against Overstock

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On October 15, 2024, the United States Court of Appeals for the Tenth Circuit issued an opinion in In re Overstock Securities Litigation affirming the District of Utah’s dismissal of putative class action claims under the...more

A&O Shearman

Fourth Circuit Affirms District Court’s Denial Of Motion To Amend A Securities Fraud Class Action Against Quantum Computing...

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On April 8, 2025, the United States Court of Appeals for the Fourth Circuit affirmed the district court’s denial of a motion to amend a class action complaint against a quantum computing company (the “Company”) and the...more

Blake, Cassels & Graydon LLP

Crypto Class Action Certified by Ontario Court of Appeal

In its recent decision in Lochan v. Binance Holdings Limited, the Ontario Court of Appeal upheld the certification of a class action brought on behalf of Canadian investors who purchased cryptocurrency products (Decision). It...more

Sheppard Mullin Richter & Hampton LLP

Fourth Circuit Rejects the Use of Short-Seller Report as a Basis for Satisfying Loss Causation Element in Securities Fraud Action

The United States Court of Appeals for the Fourth Circuit recently joined a growing consensus among federal appellate courts: short-seller reports, without more, rarely suffice to plead loss causation under the federal...more

Alston & Bird

The Fourth Circuit Joins the Ninth Circuit in Curtailing Plaintiffs’ Use of Short Seller Reports to Plead Federal Securities...

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Our Securities Litigation Group examines the Fourth Circuit decision to limit plaintiffs’ use of short seller reports to plead federal securities claims....more

Morgan Lewis

First Circuit Vacates $93 Million Judgment for SEC, Including $65 Million Disgorgement Award

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On April 1, the US Circuit Court of Appeals for the First Circuit vacated a $93 million judgment for the SEC against Commonwealth Financial, including a $65 million disgorgement award. The three-judge panel concluded that the...more

Morgan Lewis

Securities Enforcement Roundup – March 2025

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In this issue of our monthly Securities Enforcement Roundup, we highlight top securities enforcement developments and cases from March 2025. In March 2025: US Securities and Exchange Commission (SEC or the Commission)...more

Bracewell LLP

Triggers and Risks

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Having granted a Writ of Certiorari to review the decision of the United States Circuit Court of Appeals for the Ninth Circuit (the “Ninth Circuit”) in Amalgamated Bank et al v. Facebook, Inc. et al (In re Facebook, Inc....more

A&O Shearman

Second Circuit Upholds Dismissal Of Federal Securities Law Claims Against Cryptocurrency Trading Platform Operator

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On February 26, 2025, the United States Court of Appeals for the Second Circuit affirmed the dismissal of federal securities claims against the developers of a decentralized cryptocurrency exchange and the exchange’s venture...more

Cooley LLP

Money Laundering: The UK Supreme Court’s Decision in El-Khouri Changes Scope of Extraterritoriality Under POCA

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In the recent judgment in El-Khouri v. Government of the United States of America, a case concerning the operation of the double criminality rule in the context of extradition, the UK Supreme Court made a seminal ruling on...more

Carlton Fields

Florida Appeals Court Decisions Week of February 24 - 28, 2025

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U.S. Eleventh Circuit Court of Appeals - USA v. Charles - sentencing - Miller v. Ramirez - qualified immunity, deferring ruling - Chapman v. Dunn - prison conditions, Eighth Amendment - USA v. Horn - securities...more

Cooley LLP

Trends in 2024 Securities Class Actions: AI and Biotech Cases On the Rise, Second Circuit Bounces Back

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Cornerstone Research recently issued its 2024 Year in Review report examining recent trends in securities class action filings. For the second year in a row, the number of securities class action filings saw an uptick,...more

A&O Shearman

The Ninth Circuit Affirms Dismissal Of Claims Against Hearing Aid Manufacturer Regarding Statements About Insurance Coverage

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On January 10, 2025, the United States Court of Appeals for the Ninth Circuit Court affirmed the dismissal of a putative securities class action brought by a pension plan alleging that a hearing aid manufacturer (the...more

Alston & Bird

Exploring the Dismissals of the Facebook and NVIDIA Appeals

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Our Securities Litigation Group unpacks the U.S. Supreme Court’s recent dismissal of appeals in two securities class actions....more

Akin Gump Strauss Hauer & Feld LLP

US Supreme Court Declines to Resolve Pleading Requirements for Securities Fraud Claims

In an unexpected turn of events, the U.S. Supreme Court recently dismissed without explanation two securities fraud class action cases out of the U.S. Court of Appeals for the 9th Circuit—Facebook, Inc. v. Amalgamated Bank...more

Skadden, Arps, Slate, Meagher & Flom LLP

Insights: The Delaware Edition - December 2024

In this issue, we explore ongoing corporate law issues involving controlling stockholders, with significant decisions anticipated from the Delaware Supreme Court in 2025; the rise in litigation over earnout provisions in...more

BCLP

U.S. Supreme Court Again Changes its Mind, Will Not Decide NVIDIA Securities Law Dispute

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A month ago, the U.S. Supreme Court seemed on the verge of deciding two securities law cases that could substantially limit plaintiffs’ ability to maintain securities fraud class actions against public companies.  Now, the...more

A&O Shearman

Supreme Court Hears Oral Argument On Standard For Pleading Securities Fraud In Private Civil Suits

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On November 13, 2024, the United States Supreme Court heard oral argument in an appeal from a decision of the United States Court of Appeals for the Ninth Circuit in a putative class action asserting claims under the...more

Vinson & Elkins LLP

SCOTUS To Focus on the Securities Fraud Pleading Standard in Two Cases Next Term

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In a pair of orders issued this month, the U.S. Supreme Court signaled plans to provide further guidance in its upcoming Fall term concerning application of the heightened standard for pleading securities fraud claims...more

Alston & Bird

Supreme Court to Hear Two Important Appeals Regarding the Requirements for Pleading Securities Fraud

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The U.S. Supreme Court has agreed to hear appeals of the Ninth Circuit’s decisions in the Facebook and NVIDIA putative securities class action cases. Our Securities Litigation Group breaks down the potentially far-ranging...more

Mintz

SCOTUS Grants Certiorari to Hear NVIDIA Fraud Appeal on PSLRA Pleading Standard

Mintz on

Last week, the United States Supreme Court granted certiorari in NVIDIA Corp. v. E. Ohman J:Or Fonder AB., Case No. 23-970, to address two fundamental questions about how federal securities fraud cases must be pled to survive...more

Goodwin

Key Questions for the Upcoming Private Funds Rules Fifth Circuit Decision

Goodwin on

As a reminder, the Securities and Exchange Commission (SEC) and the National Association of Private Fund Managers (NAPFM) and the other Petitioners in the Private Funds Rules Litigation1 requested that the three-judge panel...more

Skadden, Arps, Slate, Meagher & Flom LLP

Expert Allegations Could Become More Frequent in Securities Fraud Complaints and Possibly Erode Pleading Standards

Key Points - - A divided Ninth Circuit panel held that a shareholder plaintiff could rely on an expert’s after-the-fact analysis of public information to allege that a company’s public statements were false or misleading...more

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