Judge Koeltl

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In an opinion yesterday, Judge Koeltl dismissed a securities class action accusing various Dynegy officials of making false statements, and omitting material facts, concerning Dynegy’s attempt at a restructuring in 2011. One of the plaintiff’s theories was that Dynegy failed to tell shareholders that, while it was trying to restructure, the company was actually insolvent. Judge Koeltl found that the defendants were not obligated to characterize the situation in that particular way:
Continue Reading Judge Koeltl Dismisses Securities Class Action Because Alleged Fraud Would Harm Creditors, Not Shareholders

In an opinion today, Judge Koeltl partly dismissed a RICO case accusing a home action company called Concierge of deceiving customers about its “auction results, sales statistics, and track records,” and engaging in “other fraudulent conduct such as using shill bidders, allowing bids from unregistered bidders, and adding a reserve at the last minute.” Judge Koeltl found that Conceirge’s competitor, Grand Estates, lacked standing to bring RICO claims arising from fraud that harmed it only indirectly:
Continue Reading Judge Koeltl Finds No RICO Standing For Claim That Competitor Gained Unfair Advantage by Defrauding Customers

Bank of America on Tuesday moved to dismiss a class action accusing it of failing to disclose that AIG had threatened to sue the bank for misrepresenting the quality of mortgage-back securities. The plaintiffs allege the fraud came to light when the AIG suit was filed, and Bank of America’s stock dropped. Bank of America’s motion argues that the overall risk of mortgage-backed securities litigation was well known, even if the specific AIG suit wasn’t disclosed:
Continue Reading Bank of America Moves to Dismiss Class Action Alleging Failure to Disclose AIG Lawsuit