Securities fraud litigation practices. The US Court of Appeals for the Ninth Circuit held that a party does not violate the automatic discovery stay found in the Private Securities Litigation Reform Act when it uses documents provided by a third party produced in accordance with a subpoena issued before the stay went into effect.Petrie v. Electronic Game Card, Inc.
Securities fraud case against small company moves forward. A federal district court has held that a complaint alleging misstatements made by a small manufacturing company and its officials stated a claim for securities fraud. Because of their positions and the issuer’s small size, the defendants must have had actual knowledge of the company’s internal affairs and known that statements made about the firm’s future were false. (7/25/2014) Fitzpatrick v. Uni-Pixel, Inc.