The US Supreme Court last week delivered another blow to the unsteady secondary loan market industry by denying a request for certiorari in an
The New York Court of Appeals, New York’s highest court, recently held that New York’s Martin Act does not preclude private investors from bringing common law tort claims such as breach of fiduciary duty or negligence arising out of the sale of securities.
In Assured Guaranty (UK) Ltd. v. J. P. Morgan Investment Management Inc., 2011 N.Y. Slip Op. 09162, 2011 WL 6338898 (N.Y. Dec. 20, 2011), the New York Court of Appeals held that the Martin Act, N.Y. Gen. Bus. Law art. 23-A New York’s “blue sky” law designed to address fraudulent practices in the marketing of securities does not preempt common law causes of action for breach of fiduciary duty and gross negligence in connection with the marketing or sale of securities, even if the alleged wrongdoing also would fall within the purview of the Martin Act.
Shareholders in three mutual funds issued by Morgan Keegan Select Fund, Inc. (the Funds) filed a state court class action alleging that the Funds’ officers, directors, and affiliates took unjustified risks in allocating the Funds’ assets and then concealed those risks from shareholders, causing the shareholders to retain their shares while the shares dropped in value.
New York’s “blue sky” law, the Martin Act, has been a substantial impediment to certain types of private legal actions involving securities.
The Martin ActNew York's "blue sky" lawprohibits various fraudulent and deceitful practices in the distribution, exchange, sale and purchase of securities.
In 2009, several courts considered whether state laws that bar discretionary clauses in plan provisions governing the administration of benefit claims were preempted by the Employee Retirement Income Security Act of 1974 ("ERISA") and, if so, whether they were saved from preemption by virtue of ERISA’s savings clause.
Courts over the years have struggled with determining when a particular group of individuals is a "class" in all but name and, thus, should be subject to the restrictions associated with bringing class claims under the Securities Litigation Uniform Standards Act ("SLUSA").
The Office of the Comptroller of the Currency (the "OCC") has issued two recent Interpretive Letters that further confirm the preemption of national bank fiduciary powers from various state laws that would seek to restrict those powers.
On February 29, 2008, a federal judge in Michigan held that ERISA does not preempt regulations issued by the Michigan Office of Financial and Insurance Services (“OFIS”) that prohibit insurers from utilizing “discretionary clauses” in their insurance policies after June 1, 2007.