Insider stock sales that were not unusual did not raise inference of scienter *

USA - July 10 2009
Plaintiffs, purchasers of the common stock of a sportswear manufacturing company, commenced a class action litigation against the company and two of its officers and directors, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Co-authors: Bruce M. Sabados.

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Remand appropriate because fraud claim did not necessarily raise federal issue *

USA - July 10 2009
The plaintiff filed a complaint in California state court alleging four state law causes of action, including claims for fraud, in connection with a "hostile takeover" of the plaintiff.

Co-authors: Bruce M. Sabados.

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Court denies motion to dismiss claims against “winners” of Ponzi scheme *

USA - May 29 2009
The receiver of a collapsed Ponzi scheme orchestrated and maintained by Val Edmund Southwick brought an action for fraudulent transfer and unjust enrichment against two consultants to Mr. Southwick’s organizations who allegedly received millions of dollars in consulting fees during the period in which he operated the Ponzi scheme.

Co-authors: Anthony Paccione.

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Investors in municipal bonds sufficiently pleaded scienter *

USA - May 29 2009
The U.S. District Court for the Northern District of California held that scienter was sufficiently pleaded in a proposed counterclaim set forth by investors in municipal bond notes against the issuing city and its underwriter.

Co-authors: Anthony Paccione.

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Federal court holds scienter sufficiently pleaded and denies motion to dismiss securities fraud claims *

USA - May 8 2009
A federal district court has ruled that plaintiffs in a securities fraud action against an investment fund and its advisors sufficiently pleaded claims under Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5.

Co-authors: Steven Shiffman.

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